Investors lose N220bn in one week as profit-taking persist


By Olabode Jegede

Investors in the equities market recorded profit-taking that led to market value dropping by N220.85 billion in five days.

The profit-taking in led the market capitalisation dropping by 1.68 per cent or N220.85 billion from N13.137 trillion the equities market opened for trading to close on Friday at N12.917 trillion.

Consequently, the NSE All-Share Index (ASI) sheds 1.68 per cent or 453.67 basis points to close at 26,533.78 basis points from 26,987.45 basis points it opened for trading last week.

On sectoral breakdown, all other indices finished lower with the exception of the NSE Banking Index that rose by 0.14 per cent to close at 325.81 basis points.

NSE Consumer Goods plunged by (3.96 per cent), NSE Oil and Gas (3.17 per cent) NSE Industrial (1.76 per cent) and NSE Insurance (1.60 per cent) to 511.65 basis points, 225.75 basis points and 1,056.07 basis points, 118.46 basis points, respectively in the course of the week.

However, the equities market recorded a total turnover of 1.41 billion shares worth N31.96 billion in 13,616 deals were traded this week by investors on the floor of the Nigerian exchange in contrast to a total 660.65 million shares valued at N9.19 billion that exchanged hands last week in 12,032 deals.

“Although, there is currently no positive to trigger to sustain long-term improve performance, we however project moderate improve performance, owing to current floor of many stock prices and possible return of speculative trading ahead of the release of Q3 earning results,” Analyst at GTI Securities Limited.

According to NSE weekly report, “The Financial Services industry (measured by volume) led the activity chart with 1.081 billion shares valued at N8.739 billion traded in 7,720 deals; thus contributing 76.73 per cent and 27.34 per cent to the total equity turnover volume and value respectively.

“The Industrial Goods industry followed with 163.852 million shares worth N19.264 billion in 982 deals. The third place was Conglomerates industry with a turnover of 74.229 million shares worth N120.488 million in 734 deals.

“Trading in the Top Three Equities namely, Custodian Investment Plc, FCMB Group Plc and Access Bank Plc (measured by volume) accounted for 683.802 million shares worth N4.001 billion in 1,247 deals, contributing 48.52 per cent and 12.52 per cent to the total equity turnover volume and value respectively.”

Also traded during the week were a total of 9,219 units valued at N1.079 million were traded this week in 24 deals compared with a total of 3,015 units valued at N701,234.17 transacted last week in 16 deals.

A total of 2,519 units of Federal Government Bonds valued at N2.670 million were traded this week in 12 deals compared with a total of 4,250 units valued at N4.305 million transacted last week in 6 deals.

The Exchange revealed that 20 equities appreciated in price this week, higher than 15 in the previous week. 33 equities depreciated in price this week, lower than 39 in the previous week, while a 116 equities remained unchanged, higher than a 112 equities recorded in the preceding week.

On the advancers’ league, Associated Bus Company recorded the highest gain after rising from N0.34 to N0.44, an up by N0.10 or 29.41 per cent. Africa Prudential followed suit rising from N3.52 to N4, an increase of N0.48 or 13.64 per cent, while Nascon Allied Industries advanced from N13.20 to N14.85, an increase of N1.65 or 12.50 per cent.

Guinness Nigeria recorded the highest decline from N32.90 to N29.35, down by N3.55 or 10.79 per cent. P Z Cussons Nigeria followed after decreasing from N7 to N6.30 losing N0.70 or 10 per cent while Champion Breweries lost 11 kobo or 9.57 per cent from N1.15 to N1.04.

Analyst at Cowry Asset Management Limited noted that, “In the new week, we expect the local bourse to close in green territory.

“Although investors’ sentiment still remains weak given the perceived attractiveness of fixed investment yields, we feel that the optimism, albeit temporal, will be stimulated by anticipated Q3 2019 companies’ results.”


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