Nigeria’s equity market shook off the Central Bank of Nigeria’s (CBN) policy-induced rally as sentiments turned negative after four consecutive weeks of gains.
With losses recorded across the five trading sessions of the week, the All-share index shed 0.54 per cent to settle the Year-to-Date (YtD) loss at -14.56 per cent while the market capitalisation closed the week at N12.962 trillion.
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 -1.27 and -1.16 per cent. Also, the insurance (-0.87 per cent) and Oil and Gas (-0.43 per cent) indices closed negative. Conversely, gain of +1.71 per cent was recorded in the Consumer Goods sector.
FCMB Group Plc, Access Bank Plc and Zenith BankPlc, maintained their standing as the top traded equities accross the week (measured by volume) accounting for 334.221 million shares worth N3.116 billion in 3,684 deals, contributing 35.08 and 24.39 per cent to the total equity turnover volume and value respectively.
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 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 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 while the third place was Consumer Goods industry with a turnover of 57.636 million shares worth N2.009 billion in 2,095 deals.
Nineteen equities appreciated in price during the week, lower than 31 equities in the previous week.
Thirty-five equities depreciated in price, higher than 32 equities in the previous week, while 111 equities remained unchanged, higher than102 equities recorded in the preceding week.
Speaking to Sunday Sun, a stockbroker who craved anonymity, noted that the week saw investors retreating back as they are preparing for the Santa Claus rally in the coming days.
“These investors had to retreat because they feel that they would be able to get more buys and make more sells during the coming week and so this is just a one-off as we expect to see some gains recorded”, he said.
Cordros Capital in their weekly assessment, said: “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”.