Equities market depreciates by 0.37% WoW
By Kayode Tokede
The equities market of the Nigerian Stock Exchange (NSE) ended the first trading week of 2021 in the negative, as losses recorded on the second and last trading days eroded gains from the other trading days of the week
Accordingly, the Nigerian Stock Exchange All-Share Index declined by 0.37 WoW to close at 40,120.22 basis points from 40,270.72 basis points it opened for trading.
Activity levels were mixed, as trading volumes surged by 87.9 per cent WoW while value traded declined by 23.5per cent WoW.
Consequently, the equities market Year-Till-Date (YTD) return stood at -0.4per cent.
However, all other indices finished higher with the exception of NSE Premium, NSE Lotus II and NSE Industrial Goods which depreciated by 2.99per cent, 1.22 per cent and 2.29 per cent while the NSE ASeM and NSE Growth Indices closed flat
The performances across the sectors were broadly positive, save for the Industrial Goods (-0.6 per cent) index; the Oil and Gas (+13.2per cent), Insurance (+9.5 per cent), Banking (+3.2 per cent) and Consumer Goods (+2.6 per cent) closed positive.
The NSE weekly performance stated that, “A total turnover of 3.394 billion shares worth N19.867 billion in 26,808 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.806 billion shares valued at N25.966 billion that exchanged hands last week in 14,634 deals.
“The Consumer Goods Industry (measured by volume) led the activity chart with 2.026 billion shares valued at N7.503 billion traded in 4,031 deals; thus contributing 59.70% and 37.77 per cent to the total equity turnover volume and value respectively.
“The Financial Services Industry followed with 939.288 million shares worth N7.820 billion in 14,020 deals. The third place was
“Conglomerates Industry, with a turnover of 139.882 million shares worth N182.151 million in 885 deals.
“Trading in the top three equities namely Champion Breweries Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc (measured by volume) accounted for 2.144 billion shares worth N6.002 billion in 1,971 deals, contributing 63.18 per cent and 30.21 per cent to the total equity turnover volume and value respectively.”
The report said, a total of 196,294 Exchange Traded Funds (ETF) units valued at N816.553 million were traded last week in 38 deals and also a total of 10,051 units valued of Bonds at N12.591 million were traded last week in 27 deals.
Analysts at Investment One research said, “In the short term, we believe positioning for FY 2020 dividends will continue to support buying activity in the market amid negative real returns in the fixed income market even as we do not rule out intermittent profit-taking. However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”
