Investors on NSE lose N368bn in one week
By Kayode Tokede
Investors on the Nigerian Stock Exchange (NSE) lost N368billion in one week as bearish sentiments dominated the local bourse over concerns about the uptick in yields in the money market made investors sell down their portfolio.
The equities market capitalization closed last week at N21.819 trillion on Friday, 1.66 per cent decline from N22.187trillion the market opened for trading last week.
Consequently, the market All-Share Index also dropped by 1.66 per cent to 1.66 per cent to 41,709.09 basis points from 42,412.66 basis points.
Notably, sell offs in Lafarge Wapco Plc (-11.2 per cent), Zenith bank plc (-4.4per cent), Nestle Nigeria Plc (-3.7 per cent) and Dangote cement Plc(-2.5 per cent) drove the weekly loss.
Sectoral performance was broadly negative as all sectors closed in the red. The Insurance (-six per cent) index led the losers chart followed by Consumer Goods (-3.2 per cent), Banking (-2.3 per cent), Industrial Goods (-2.1%) and Oil and Gas (-0.2 per cent) indices.
The weekly NSE report stated that, “A total turnover of 2.767 billion shares worth N29.685 billion in 31,380 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 2.570 billion shares valued at N27.884 billion that exchanged hands last week in 31,466 deals.
“The Financial Services Industry (measured by volume) led the activity chart with 1.924 billion shares valued at N20.344 billion traded in 15,160 deals; thus contributing 69.54per cent and 68.53 per cent to the total equity turnover volume and value respectively.
“The Conglomerates Industry followed with 264.795 million shares worth N523.521 million in 1,528 deals. The third place was Consumer Goods Industry, with a turnover of 197.407 million shares worth N3.366 billion in 6,240 deals.
“Trading in the top three equities namely Union Bank of Nigeria Plc, First Bank Holding Plc and Transnational Corporation of Nigeria (measured by volume) accounted for 859.867 million shares worth N4.250 billion in 2,459 deals, contributing 31.08 per cent and 14.32 per cent to the total equity turnover volume and value respectively.”
The report added that a total of 238,451 units valued at N1.799 billion ETFs was traded last week in 38 deals and a total of 8,002 units valued of Bonds at N9.171 million were traded last week in seven deals.
However, analysts at Cordros research stated that, “With the moderation in the prices of bellwether stocks this week, we expect savvy investors to take advantage of this and make re-entry ahead of their FY 2020 earnings announcement.
“However, we note that the recent hike in OMO rates by the CBN will continue to stoke uncertainties on the direction of yields, keeping risk-averse investors on the side-lines.
“Thus, we expect a zig-zag market performance in the week ahead. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”
