Stock market investors lose N315bn in one week


Story by Olabode Jegede

Investors in the equities market of the Nigerian Stock Exchange (NSE) recorded another dismal performance, closing negative in favour of the bears to lose N315 billion in one week.

The NSE ASI lost 647.29 basis points, representing a decline of 2.27 per cent to close at 27,919.50 basis points from 28,566.79 basis points reported in previous week.

Consequently, Market statistics obtained by the Nigerian NewsDirect showed that the market capitalisation, which opened trading at N13.922 trillion, lost N315 billion or 2.27 per cent to close trading at N13.607 trillion.

In the week under review, a total turnover of 1.086 billion shares worth N13.390 billion in 15,774 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 988.491 million shares valued at N13.839 billion that exchanged hands last week in 16,414 deals.

Further breakdown of the trading showed that “The Financial Services industry (measured by volume) led the activity chart with 829.468 million shares valued at N8.493 billion traded in 8,596 deals; thus contributing 76.41 per cent and 63.42 per cent to the total equity turnover volume and value respectively.

“The ICT Industry followed with 90.049 million shares worth N851.989 million in 658 deals. The third place was Conglomerates Industry with a turnover of 56.788 million shares worth N84.522 million in 731 deals.

Trading in the Top Three Equities namely, FBN Holdings Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc (measured by volume) accounted for 420.921 million shares worth N5.516 billion in 3,430 deals, contributing 38.77 per cent and 41.19 per cent to the total equity turnover volume and value respectively.”

There was no Exchange Traded Products (ETPs) traded during the week. However a total of 1,115 units valued at N165,837 were executed in 3 deals last week.

A total of 5,666 units of Federal Government Bonds valued at N5.847 billion were traded this week in 17 deals compared with a total of 756 units valued at N730,454.35 transacted last week in 7 deals.

Analysts at Afrinvest Limited said that, “We believe the bearish performance will be sustained despite attractive prices in fundamentally sound stocks as poor H1:2019 earning results do little to spur investors’ interest.”

Lasaco Assurance Plc topped the gainers’ chart with 13.79 per cent to close at 33 kobo per share. Abbey Mortgage Bank Plc followed with 10 per cent to close at 99 kobo, as Cornerstone Insurance Plc garnered 10 per cent to close at 22 kobo per share. A.G. Leventis Nigeria Plc grew by 6.67 per cent to close at 32 kobo, while Dangote Sugar Refinery Plc appreciated by 6.13 per cent to close at N11.25per share.

On the contrary, Mcnichols Plc led the losers’ chart, reducing by 18.18 per cent to close at N0.45 per share. Cement Company of North Nigeria Plc followed with a loss of 17.24 per cent to close at N12, while Courteville Business Solutions Plc was down by 16.67 per cent to close at N0.20 per share. Royal Union Bank Nigeria Plc shed 12.67 per cent to close at N6.55. Nigerian Aviation Handling Company Plc declined by 11.65 per cent to close at N2.35per share.

According to report gathered on the NSE, “15 equities appreciated in price during the week, lower than 18 in the previous week. 52 equities depreciated in price, higher than 39 equities in the previous week, while 102 equities remained unchanged, lower than 111 equities recorded in the preceding week.”

Analysts at GTI Securities Limited stated that, “In the absence of any external catalyst, we expect the monetary policy decision of the Central bank of Nigeria (CBN) at the next MPC meeting and the performance of companies in their Q2’19 earnings result to shape the direction of the overall market performance next week.”


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