Equities market sheds 0.54% to settle YTD loss at -14.56%

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Story by Kayode Tokede

The equities market of the Nigerian Stock Exchange (NSE) depreciated y 0.54 per cent last week to 26,855.52 basis points from 27,002.15 basis points, brings the Year-Till-Date (YTD) performance to -14.56per cent.

Trading last week witness the domestic equities market shaking off the Central Bank of Nigeria’s (CBN) policy-induced rally, as sentiments turned negative after four consecutive weeks of gains.

Our correspondent gathered that the equities market recorded a losses across the five trading sessions of the week.

Analysing the performance by sectors, significant losses recorded in the industrial Goods and Banking sector dampened the market performance, after the indices respectively slid by -1.27per cent and -1.16per cent to 1,069.12 basis points and 356.93 basis points respectively.

Also, the insurance dropped by 0.87 per cent to 119.16 basis points and Oil and Gas declined by 0.43 per cent to 233.97 basis points respectively. Conversely, gain of +1.71 per cent to 551.01 basis points was recorded in the Consumer Goods sector in its Week-on-Week (WoW) performance.

According to NSE weekly report, a total turnover of 952.697 million shares worth N12.774 billion in 17,279 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.161 billion shares valued at N13.174 billion that exchanged hands last week in 18,142 deals.

The report explained that, “The Financial Services industry (measured by volume) led the activity chart with 690.986 million shares valued at N6.787 billion traded in 10,718 deals; thus contributing 72.53 per cent and 53.13 per cent to the total equity turnover volume and value respectively.

“The Conglomerates industry followed with 101.908 million shares worth N701.283 million in 974 deals.

“The third place was Consumer Goods industry with a turnover of 57.636 million shares worth N2.009 billion in 2,095 deals.”

The report stated that trading in the top three equities namely, FCMB Group Plc, Access Bank Plc and Zenith Bank Plc. (measured by volume) accounted for 334.221 million shares worth N3.116 billion in 3,684 deals, contributing 35.08per cent and 24.39 per cent to the total equity turnover volume and value respectively.

“A total of 6,140 units valued at N103, 759.84 were traded this week in 17 deals, compared with a total of 11,991 units valued at N102, 312.34 transacted last week in 30 deals.

“A total of 27,096 units of Federal Government Bonds valued at N27.630 million were traded last week in 25 deals, compared with a total of 313,912 units valued at N320.719 million transacted in prior week’s in 23 deals.”

“In our view, given the risked off sentiment dominating the domestic market, we expect the market to shed points in the coming week, except we see a policy-driven catalyst.

“Nevertheless, valuations remain attractive, hence we expect pockets of gains over the final month of the year as fund and portfolio managers realign portfolios prior to the start of 2020,” analysts at Cordros capital explained.

However, analysts  at  InvestmentOne Research said “We still maintain our view that investors should take positions in quality names with a medium to long time investment horizon as prices remain attractive at current levels.”