The bearish run in the equities market climaxed last week as investors profit-taking led to market value dropping by N381 billion in five days.
The economy uncertainty led the market capitalisation dropping by 2.85 per cent to N13.322 trillion the equities market opened for trading to close on Friday at N12.941 trillion.
The market depreciation is coming on the heels of profit-taking in Dangote Cement, among others on Friday as the market capitalization decreased by N287.03 billion, representing a dip of 2.17per cent, closing at N12.94 trillion.
Consequently, The Nigerian Stock Exchange All-Share Index (NSE ASI) sheds 2.88 per cent to complete a weeklong losing streak.
The NSE ASI fell to an 11 months low of 35,446.47 basis points, from 36,499.67 basis points as high-mid cap companies continues to depreciate.
NSE Oil/Gas Index top losers indices last week, followed by NSE Premium Index while NSE ASeM trading flat.
The NSE Oil/Gas index depreciated by 5.71 per cent or 17.20 basis points to 300.50 basis points on Friday from 317.70 basis points the equities market opened for trading.
NSE Premium Index also dropped by 4.98 per cent or 131.78 basis points to 2,512.59 basis points from 2,644.37 basis points while NSE ASeM remained flat at 809.92 basis points.
However, the equities market recorded a total turnover of 925.630 million shares worth N8.333 billion in 15,565 deals were traded last week by investors on the floor of the Exchange.
According to NSE weekly report, “The Financial Services Industry (measured by volume) led the activity chart with 680.751 million shares valued at N5.283 billion traded in 8,524 deals; thus contributing 73.54per cent and 63.40per cent to the total equity turnover volume and value respectively.
“The Healthcare Industry followed with 47.664 million shares worth N31.197 million in 531 deals. The third place was occupied by Conglomerates Industry with a turnover of 40.814 million shares worth N63.710 million in 728 deals.
“Trading in the Top Three Equities namely -United Bank for Africa Plc, Wema Bank Plc and Zenith International Bank Plc (measured by volume) accounted for 260.554 million shares worth N2.790 billion in 2,266 deals, contributing 28.15per cent and 33.48per cent to the total equity turnover volume and value respectively.”
According to analysts at GTI securities limited, “Our expectation for the upcoming week is mixed. We expect a moderate slowdown in the bearish outlook as investors in stocks with strong fundamentals are likely to resist the current selloff pressure.
“However, we expect the currently tensed political climate and a host of other unfavourable conditions to continue to weigh on the market performance.”
Also, analysts at Cordros Capital said, “In the short to medium term, selloffs are likely to persist in the absence of a near-term positive trigger, and amidst brewing political concerns.
“However, macroeconomic fundamentals remain stable and supportive of recovery in the long term.”