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Chinwendu Obienyi
The Nigerian equities market recorded a negative performance during the holiday-shortened trading week, as the benchmark index declined by 2.05 per cent week-on-week (w-o-w) – highest weekly loss since the week ended April 5, 2019 – to settle at 30,432.13 points.
Thus, the Month-to-Date (MtD) and Year-to-Date (YtD) losses increased to 2.05 per cent and 3.18 per cent while market capitalisation dropped 2.06 per cent to close the N13.402 trillion respectively, thus depicting N283 billion loss in three consecutive trading sessions.
At the beginning of the week, the local bourse continued its bearish run from the prior week as the ASI declined 0.45 per cent on the back of losses in Seplat, ETI and Dangote Sugar. After the two-day holiday, sell pressures in Dangote Cement, GT Bank and UBA dragged the benchmark index down by 1.3 per cent on Thursday. On Friday, bearish sentiment persisted in the market as the ASI trended southward by 0.31 per cent due to sell-offs in GT Bank, Nestle and Dangote Sugar.
Analysing by sector, all sectors indices – Oil & Gas (-5.15 per cent), Insurance (-4.02 per cent), Industrial Goods (-2.89 per cent), Consumer Goods (-1.21 per cent), and Banking (-1.28 per cent) – declined, further signifying the negative sentiment in the week.
Meanwhile, a total turnover of 768.983 million shares worth N12.546 billion in 11,291 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.082 billion shares valued at N18.111 billion that exchanged hands last week in 16,400 deals.
Fifteen (15) securities appreciated in price during the week, lower than thirty-five (35) in the previous week, while forty-four (44) securities depreciated in price, higher than Twenty-four (24) securities of the previous week, with one hundred and nine (109) securies remained unchanged, the same as one hundred and nine (109) equities recorded in the preceding week.
NEM Insurance topped the losers’ chart with 13.14 per cent to close at N2.05 per share. Capital oil Plc was next with a loss of 13.04 per cent to close at 0.20 kobo, Consolidated Hallmark fell by 13.04 per cent to close at 0.20 kobo, Dangote Sugar declined by 12.88 per cent to close at N11.50 while Vitafoam lost 12.71 per cent to close the week at N3.71.
On the otherhand, Champion Breweries topped the gainers’ chart with 18.81 per cent to close at N1.20 per share. Academy followed with 8 per cent to close at 0.27 kobo, Livestock feeds gained 6.78 per cent to close at 0.63 kobo, NPF Microfinance Bank notched up 6.67 per cent to close at N1.44 while Lasaco garnered 6.67 per cent to close at 0.32 kobo.
The Financial Services Industry (measured by volume) led the activity chart with 578.032 million shares valued at N7.384 billion traded in 5,934 deals; thus contributing 75.17 and 58.85 per cent to the total equity turnover volume and value respectively.
The Oil and Gas Industry followed with 55.229 million shares worth N1.486 billion in 1,111 deals. The third place was Conglomerates Industry with a turnover of 48.332 million shares worth N227.418 million in 470 deals.
Trading in the Top Three Equities namely, Guaranty Trust Bank, United Bank for Africa Plc, and First City Monument Bank (measured by volume) accounted for 329.929 million shares worth N5.341 billion in 1,427 deals, contributing 42.90 and 42.57 per cent to the total equity turnover volume and value respectively.
Reacting, Cordros Capital in a weekly note to Daily Sun, said, “we reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term.”
Also, analysts at Afrinvest said, “although we expect bargain hunting on stocks, which have recently suffered losses next week, we believe sentiment would remain bearish in the absence of any major market catalyst.”
