Equities market posts bearish performance, sheds N291.5bn


The equities market of Nigerian Stock Exchange (NSE) posted a bearish performance last week as investors lost N291.5 billion despite positive earnings releases of some listed companies.

Profit taking and sell pressures persisted across most trading sessions as the benchmark index, NSE All Share Index (ASI) dropped by 781.79 basis points or 2.45 per cent close the week at 31,142.72 basis points from 31,924.51 basis points it opened for trading last week.

Consequently, the market capitalization dropped by 2.45 per cent to N11.614 trillion from N11.905 trillion it opened for trading in prior week.

Analysts at Afrinvest Limited said that, “Consequent on the losses recorded on four trading sessions last week, we expect to see some bargain hunting in early trades this week, supported by positive earnings release on some counters.

“Nonetheless, given the paucity of foreign portfolio participation in the local bourse, we anticipate that the lingering bearish sentiments would drive a negative close.”

In the week under review, a total turnover of 1.113 billion shares worth N13.465 billion in 15,036 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.290 billion shares valued at N13.873 billion that exchanged hands prior two weeks in 17,307 deals.

The Exchange revealed that 18 equities appreciated in price during the week, lower than 24 in the previous week. 45 equities depreciated in price, higher than 37 equities of the previous week, while 105 equities remained unchanged lower than 107 equities recorded in the preceding week.

Similarly, all other indices finished lower with the exception of the NSE ASeM and NSE Oil/Gas indices which appreciated by 0.21 per cent and 0.09 per cent respectively.

Meanwhile, Analysts at APT Securities and Fund Limited said that, “We are optimistic of a mid to long term positive outing backed by good fundamentals.

CAP recorded the highest price gain of 10 per cent, to close at N37.40 per share. Mcnichols Plc followed with a gain of 9.62 per cent to close at 57 kobo per share, while Royal Exchange Plc rose by 9.37 per cent to close at 35 kobo per share.

Cadbury Nigeria Plc appreciated by 9.09 per cent  to close at N12, while UACN Property Development Company Plc rose 7.14 per cent to close at N1.95 per share.

On the other hand, Africa Prudential Plc led the losers’ chart by 20.83 per cent, to close at N3.80, per share. FCMB Group Plc shed 12.74 per cent to close at N1.87, while Zenith Bank Plc depreciated by 11.82 per cent to close at N22, per share.

International Breweries Plc declined by 10.93 per cent to close at N24.05 and Wema Bank Plc shed 10.47 per cent to close at 77 kobo, per share.

According to NSE weekly report, “The Financial Services Industry (measured by volume) led the activity chart with 926.286 million shares valued at N9.696 billion traded in 9,906 deals; thus contributing 83.25 per cent and 72.01 per cent to the total equity turnover volume and value respectively.

“The ICT Industry followed with 73.076 million shares worth N14.664 million in 35 deals. The third place was Consumer Goods Industry with a turnover of 36.749 million shares worth N2.562 billion in 2,301 deals.

“Trading in the Top Three Equities namely, FBN Holdings Plc, Zenith Bank Plc and Diamond Bank Plc (measured by volume) accounted for 551.865 million shares worth N6.602 billion in 3,116 deals, contributing 49.60 per cent and 49.03 per cent to the total equity turnover volume and value respectively.”

Analysts at GTI Securities Limited stated that, “With the slump in the prices of major blue chips stocks in recent weeks, we expect speculative trading to shape the market direction in the next trading week.”


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