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The Nigerian equities market continued to plummet as the volume of shares traded by investors dropped by 896.61 million shares as against 1.40 billion shares traded last week.Similarly, the All Share Index (ASI) declined by 0.32 per cent to close the week at 26,448.62 points while market capitalisation settled at N12.875 trillion respectively.
This means that investors lost about N41 billion in five consecutive trading sessions.
Consequently, the Month-to-Date (MTD) and Year-to-Date (YTD) returns worsened to-4.3 and -15.9 per cent, respective- ly. Analysing by sectors, sustained selloffs across Tier I Banks dragged the banking index to a 2.0 per cent loss; the Industrial Goods (-0.3 per cent) and Oil & Gas (-0.2 per cent) indices also recorded declines. Conversely, the Insurance (+2.4 per cent) index resumed its upward trend, following a break in its three-week gaining streak in the pre- vious week, while the Consumer Goods (+0.1 per cent) index followed suit, recording a marginal gain. The NSE ASeM index on the other hand, closed flat. Nineteen equities appreciated in price during the week, lower than 20 in the previous week. Twenty-three equities depreciated in price, lower than 33 equities in the previous week, while one 124 equities remained unchanged, higher than 113 equities recorded in the pre- ceding week.
At the close of trading on Friday, Cornerstone led the laggards with 17.96 per cent to close at 0.32 kobo per share. Cutix Plc was next with 12.96 per cent to close at N1.31, PZ Cussons dropped 11.90 per cent to close at N5.55, Chams decreased by 11.54 per cent to close at 0.23 kobo while UACN lost 10.44 per cent to close at N6.40.
On the flipside, Consolidated Hallmark topped the gainers’ chart with 17.86 per cent to close at 0.33 kobo per share. Fidson followed with a gain of 11.11 per cent to close at N4, Custodian increased by 9.73 per cent to close at N6.20, Law Union gained at 6.82 per cent to close at 0.47 kobo while Livestock feeds garnered 6.38 per cent to close at 0.50 who spoke with Sunday Sun noted that the bearish condition is expected to continue following investors’ focus on fixed income instruments and added that they remain less optimistic about the growth of the Nigeria over the rest of 2019. A market expert who craved for anonymity said that the market is suffering from the weak state of the economy while adding that there is obviously nothing driving investors towards equities.“Judging by how the stock market closed this week, investors are not focusing on equities rather they have shifted their focus to fixed income instruments which is more like a safe haven to them now.
“As far as I am concerned, there has not been any positive trigger to make investors look at our market because our economy is not growing at the rate it is supposed to, so I still foresee the bears trending at least at the start of the new trading week, but bargain opportunities still exist for investors who want to rebalance their portfolios”, she said.
For Cordros Capital, the trend witnessed through the year is likely to persist through the final quarter of the year. “We expect pockets of gains over the final months of the year as fund and portfolio managers realign portfolios prior to the start of 2020. Nonetheless, we note that valuations remain attractive driven by price deterioration throughout the year. Hence, we advise that long-term investors consider appropriately timed investments”, they said.
A total turnover of 896.610 million shares worth N16.561 billion in 12,638 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.409 billion shares valued at N31.959 billion that ex- changed hands in the preceding week in 13,616 deals.
The Financial Services industry (measured by volume) led the activity chart with 597.154 million shares valued at N6.721 billion traded in 7,197 deals; thus contributing 66.60 per cent and 40.58 per cent to the total equity turnover volume and value respectively. The Consumer Goods industry followed with 102.130 million shares worth N7.214 billion in 2,027 deals while the Service industry recorded a turnover of 84.001 million shares worth N377,017 million in 264 deals.
Trading in the top three equities namely, Guaranty Trust Bank Plc, Global Spectrum Energy Services Plc and Flour Mills Nigeria Plc; (measured by volume) accounted for 302.285 million shares worth N5.510 billion in 1,290 deals, contributing 33.71 and 33.27 per cent to the total equity turnover volume and value respectively.
Earlier in the trading week, the second tranche of the Federal Government of Nigeria (FGN) N15 billion seven-year 14.5 per cent Green Bond II due 2026, was listed on the Daily Official List of the NSE.
