Nigerian equities market continues bearish run

The Nigerian equities market last week remained volatile in three trading days of the week as investors continued to sell off their holdings across sectors, fuelling speculations that recovery may not be in sight.

At the close of trades last week, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) depreciated by 1.14 per cent to close the week at 28,841.67. Similarly, the market capitalisation declined by same margin to be at N9.915 trillion.

Also, all other Indices finished lower during the week with exception of NSE Insurance and NSE Lotus Islamic Index that chalked up by 0.93 per cent and 0.17 per cent respectively, while NSE ASeM Index closed flat.

Trading had last Monday begun on a negative note, as investors took profits on the previous Friday’s gains. As a result, the ASI declined by 0.03 per cent to close at 29,168.04 points. Likewise, market capitalisation of listed equities stood N2.5 billion lower at N10.03 trillion. In contrast to the overall market performance, volume and value of trades in that session grew by 12.8 per cent and 139.9 per cent respectively (as a result of heavy trades in Guaranty Trust Bank Plc, Nigerian Breweries Plc and Access Bank Plc). In all, one billion units of shares worth N14.68 billion were traded in 2,713 deals. Save for the Oil and Gas tracker (1.29 per cent) which gained, all other major sectors closed in the red.

The downward trend continued on Tuesday as the ASI further declined by 0.64 per cent to close at 28,981.12 points. In like manner, market capitalisation shed N64 billion to settle at N9.96 trillion. Nigerian Breweries Plc shed about 127 points from the benchmark index, largely accounting for the session’s outcome. Also weighing on the ASI’s performance were declines in Zenith Bank Plc and Forte Oil Plc. Notably, Dangote Cement Plc, Unilever Nigeria Plc and Nestle Nigeria Plc closed the session positive. Though the number of deals executed rose by 37 per cent, volume and value of trades moderated by 71.8 per cent and 87.7 per cent respectively relative to the previous session. Overall, 317 million units of shares worth N1.81 billion were traded in 3,721 deals. Save for the Industrial tracker (+0.38 per cent), all major sectors closed in the red. The Banking, Oil and Gas, and Consumer goods sectors reported respective declines of 1.15 per cent, 1.83 per cent, and 1.36 per cent.

As expected, the announcement of the federal cabinet excited the equities market on Wednesday as the recent trend was reversed. The NSE ASI appreciated by 0.12 per cent to close at 29,014.78 points today, compared with the depreciation of 0.64 per cent recorded the previous day. The appreciation recorded in the Index could be attributed to the gains recorded in the share prices of some highly capitalised stocks such as Nigerian Breweries Plc, UBA Plc, Access Bank Plc, Flour Mills Nigeria Plc and Guaranty Trust Bank Plc, amongst others. Similarly, the market capitalisation appreciated by 0.12 per cent to close at N9.97trn, compared with the depreciation of 0.64 per cent recorded the previous day.

On Thursday, the market experienced the highest decline seen so far in the month of November. The ASI closed the day in the red as investors took profits on short-term gains from the previous session. In all, the broad index fell by 0.74 per cent to settle at 28,798.67points with a corresponding market capitalization of N9.90 trillion.  Volume and value of trades went down by 23.0 per cent and 10.7 per cent respectively. Overall, 167 million units of shares worth N1.3 billion were traded in 2,990 deals. Except for the Oil and Gas tracker, which gained 0.06 per cent, on the back of Oando Plc (0.52 per cent), all other sector trackers closed in negative territory.

The market returned to positive territory last Friday with the ASI inching upwards by 0.15 per cent to settle at 28,841.67 points with a corresponding market capitalisation of N9.92 trillion. Market activity went up as both volume and market turnover were up by 41.6 per cent and 218.5 per cent respectively. In all, 237 million units of shares valued at N4.15 billion were traded in 2,501 deals. Performances of the major sector trackers came in mixed; with Oil and Gas, and Banking gaining 0.54 per cent and 0.77 per cent respectively, while the Consumer goods, and Industrials sectors declined by 0.08 per cent and 0.02 per cent respectively.

Meanwhile, investors traded 2.064 billion shares worth N23.397 billion in 14,992 deals, in contrast to a total of 1.949 billion shares valued at N17.336 billion that exchanged hands the previous week in 15,762 deals.

The Financial Services Industry led the activity chart in volume terms with 1.484 billion shares valued at N14.555 billion traded in 8,406 deals, thus contributing 71.90 per cent and 62.21 per cent to the total equity turnover volume and value respectively.

The Oil and Gas Industry followed with 324.106 million shares worth N1.839 billion in 1,680 deals. The third place was occupied by the Conglomerates Industry with a turnover of 97.566 million shares worth N225.662 million in 938 deals.

Trading in the top three equities namely – Access Bank Plc, Guaranty Trust Bank Plc and Beco Petroleum Plc, accounted for 1.034 billion shares worth N10.907 billion in 1,954 deals, contributing 50.11 per cent and 46.62 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 4,044 units of Exchange Traded Products (ETPs) valued at N281,820.83 executed in 40 deals compared with a total of 7,291 units valued at N437,490.20 transacted the previous week in 35 deals.

A total of 3,026 units of FGN Bonds valued at N3,814 million were traded in 4 deals this week.

There was no trade recorded on bonds the previous week.

The price movement chart of the NSE showed that a total of 29 equities appreciated in price during the week, higher than 24 equities of the preceding week. Thirty-eight equities depreciated in price, lower than 43 equities of the preceding week, while 123 equities remained unchanged, same as 123 equities recorded in the preceding week.

Unilever Nigeria Plc led with  N4.95) followed by Chemical and Allied Products Plc (N2.95). Others among the top gainers included: PZ Industries Plc (N1.68), UACN Property Development Company Plc (67 kobo); Ikeja Hotel Plc (27 kobo); Access Bank Plc (23 kobo); Dangote Flour Mills Plc (22 kobo); Eterna Plc (20 kobo); Fidson Healthcare Plc (19 kobo), and UBA  Plc (18 kobo).

Conversely, the top 10 losers included: Seven-Up Bottling Company Plc (N10.91), Nigerian Breweries Plc (N8.32), Guinness Nigeria Plc (N8.26), NAHCO Plc (37 kobo),  Caverton Offshore Plc (26 kobo), E-Tranzact Plc (25 kobo), AG Leventis Plc (13 kobo), Skye Bank (12 kobo), Unity Bank Plc (10 kobo),  and Evans Medical Plc (four kobo).