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Chinwendu Obienyi
Stock Market analysts at the weekend said they are anticipating sustained downtrend in the Nigerian stock market following unimpressive earning results from quoted companies as well as the first incidence of “Coronavirus”.
Nigerian stocks had suffered their biggest weekly loss last week, down by 4.3 per cent week-on-week (w-o-w) since April 2019 with investors exiting on increasing regulatory risk in the banking sector, a slump in oil prices, and as the first case of the Coronavirus which was reported in the country. Similarly, year-to-date (YTD) return worsened to -2.3 per cent while market capitalisation fell by N611 billion to close the week at N13.7 trillion.
Reacting to the development, analysts at Afrinvest said, “We anticipate a sustained downtrend in the coming week, although there are bargain hunting opportunities”.
For their part, Cordros Capital, said, “amidst continued weak market sentiments, we advise investors to trade cautiously, taking positions in fundamentally justified stocks”.
Meanwhile, activity level on the bourse was up as the average volume and value of stocks traded rose 3.2 and 35.5 per cent to 309.4 million units and N4.9 billion respectively.
However, performance across sectors of the market was unimpressive. The Industrial Goods index (+1.1 per cent ) was the lone gainer due to price appreciation in BUA Cement (+3.1 per cent). On the flip side, sell pressures in FBN Holdings (-18.3 per cent), Wema Bank (-18.2 per cent) and ETI (-15.6 per cent) compelled the sharpest loss in the Banking index (-11.8 per cent).
Trailing, the Insurance and Consumer Goods indices dipped 8.2 and 3.8 per cent respectively owing to price declines in AIICO (-22.2 per cent) and Nigerian Breweries (-21.4 per cent). Finally, the loss in Oando (-17.2 per cent) dragged the Oil & Gas index (-2.1 per cent) down.
A total turnover of 1.547 billion shares worth N24.263 billion in 21,646 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.499 billion shares valued at N17.907 billion that exchanged hands in the previous week in 18,515 deals.
The Financial Services industry (measured by volume) led the activity chart with 1.267 billion shares valued at N17.205 billion traded in 15,149 deals; thus contributing 81.91 and 70.91 per cent to the total equity turnover volume and value respectively.
The Conglomerates followed with 84.990 million shares worth N180.885 million in 654 deals while the Consumer Goods industry recorded a turnover of 65.965 million shares worth N3.918 billion in 2,235 deals.
Six (6) equities appreciated in price during the week, lower than twenty-four (24) equities in the previous week. Fifty-eight (58) equities depreciated in price, higher than twenty-eight (28) equities in the previous week, while ninety-nine (99) equities remained unchanged, lower than one hundred and eleven (111) equities recorded in the preceding week.
Law Union (+11.1 per cent), Eko Corporation (+5.8 per cent) and BUA Cement (+3.1 per cent) led the top gainers while Red Star (-27.0 per cent), Sky Aviation (-26.8 per cent) and NPF Microfinance Bank (-23.4 per cent) led the decliners.
