Story by Olabode Jegede
Investors in the equities market of the Nigerian Stock Exchange (NSE) recorded a loss of N184 billion in first week trading of September, 2019, mainly driven by profit-taking on Forte Oil, Nestle Nigeria, MTN Nigeria, Transcorp, and others.
The market capitalisation, which represents investors’ worth in the market, closed at N13.207 trillion, representing a decline of 1.38 per cent or N184 billion from N13.391 trillion the market opened for trading.
At the end of last week trading, the NSE All Share Index decreased by 1.38 per cent or 379.24 basis points to close at 27,146.57 basis points from 27,525.81 basis points it opened.
Market analysts had anticipated that the bearish momentum to continue, although there is room for gains due to opportunities for bargain hunting in fundamentally sound stocks.
The NSE Consumer Goods Index and NSE Oil/Gas Index declined by 1.34 per cent and 0.02 per cent to 519.05 basis points and 198.38 basis points respectively.
However, NSE Banking Index, NSE Insurance Index and NSE Industrial Index increased by 0.20 per cent, 0.83 per cent and 0.59 per cent to 321.83 basis points, 107.74 basis points and 1,097.67 basis points respectively.
Overall, a turnover of 1.101 billion shares worth N17.082 billion in 15,431 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 713.141 million shares valued at N13.295 billion that exchanged hands in 16,237 deals in prior trading week.
Similarly, Analyst at GTI Securities Limited stated that, “Owing to the current low prices of a number of fundamentally viable stocks, we expect bargain hunting to gather momentum in the next trading week.
Hence, we expect improve overall market performance.” The Exchange revealed that 27 equities appreciated in price during the week, higher than 25 equities in the previous week. 34 equities depreciated in price, lower than 35 equities in the previous week, while 105 equities remained unchanged, lower than 106 equities recorded in the preceding week.
According to NSE weekly report, “The Financial Services industry (measured by volume) led the activity chart with 752.440 million shares valued at N9.900 billion traded in 8,519 deals; thus contributing 68.34 per cent and 57.96 per cent to the total equity turnover volume and value respectively.
“The Conglomerates industry followed with93.204 million shares worth N239.250 million in 883 deals. The third place was Construction/Real Estate Industry with a turnover of 65.808 million shares worth N66.730 million in 100 deals.
“Trading in the Top Three Equities namely, Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank Plc (measured by volume) accounted for 530.372 million shares worth N9.096 billion in 3,604 deals, contributing 48.17 per cent and 53.25 per cent to the total equity turnover volume and value respectively.”
Meanwhile, Analyst at APT Securities and Fund Limited said that, “Even though the market maintains waves between the north and south poles, some signs of improvement are evident from the market performance during the week’s trading sessions.
“It will be notable to point out that most stocks have undergone corrections, hence bottomed out and it will be advisable to accumulate in tranches fundamentally justifiable liquid stocks that have shed weight over time.”