Proceedings on the floor of the Nigerian Stock Exchange (NSE) closed the second trading week of December on a negative note and as a result, the Month-to-Date (MtD) and Year-to-Date (YtD) losses increased to 0.99 per cent and 20.07 per cent, respectively.
The trading week witnessed three negative sessions against two positive sessions although the All-Share Index (ASI) closed on December 14, 2018 at 0.34 per cent to 30,672.79 points while market capitalization which opened N11.269 trillion, fell by N66 billion to close at N11.203 trillion.
On sectoral performance as at December 13, 2018, heavy losses in the Oil & Gas (-4.15 per cent) and Consumer Goods (-0.10 per cent) indices masked gains across Banking (+0.44 per cent), Industrial (+0.12 per cent), and Insurance (+2.46 per cent) indices.
The notable stocks include Seplat (-9.83 per cent), Nestle (-2.03 per cent), Union Bank of Nigeria (+8.33 per cent), International Breweries (+1.87 per cent), and Mansard (+10.00 per cent),
Market breadth as at December 14, 2018 was positive as 21 stocks advanced while 10 others declined. Berger topped the gainers’ chart with 10 per cent to close a N7.15 per share, First Aluminium followed with 10 per cent to close at 0.33 kobo, Seplat gained 10 per cent to close at N594, Initsplc increased by 9.84 per cent to close at 0.67 kobo while UCAP appreciated by 9.38 per cent to close at N2.80.
On the other hand, PZ led the laggards with 10 per cent to close at N10.35, Sterling Bank was next with a loss of 9.05 per cent to close at N1.81, Fidson decreased by 6.12 per cent to close at N4.60,
Eterna oil fell by 4.12 per cent to close at N4.65 while UnionDac lost 3.85 per cent to close at 0.25 Kobe per share.
On the activity chart, FCMB was the toast of investors with the sale of 105.31 million shares valued at N163.51 million. UBA sold 100.92 million shares valued at N761.99 million while Fidson traded 38.01 million shares valued at N174.84 million.
Overall, the total volume and value of stocks traded stood at 349.23 million units and N2.30 billion, respectively exchanged in 2,337 deals.
Investors have continued to trade in stocks cautiously as the positive catalyst for the equities market remains absent even as political concerns have continued to mount ahead of the upcoming 2019 elections.
Earlier in the week, the Initial Public Offering (IPO) of Skyway Aviation Handling Company Plc (SAHCO) opened for subscription.
The IPO is said to be the first public offer to be facilitated in the Nigerian capital market in the last four years following the sale of the former subsidiary of Nigerian Airways to Sifax in 2009. The company’s IPO of 406.074 million ordinary shares of 50 kobo each is to sell at N4.65 per share with the offer expected to close on the December 19, 2018.
Meanwhile analysts have said the bearish run is set to continue the following week, but, however, urged investors to take advantage of the current situation in the market to buy more stocks.
Specifically, analysts at Afrinvest said, “in subsequent trading sessions, we expect the undulating trend recorded thus far to persist while we maintain our conscious outlook for the market in the near term.”
Chief Executive Officer, Crane Securities, Mike Ezeh said: “For me, I expect bell-wethers to be more prominent since there will be more sellers than buyers this regards. Political patrons, be they institutional investors, foreign and local, high net-worth investors, will be more inclined to sell offs’ of their portfolios in order to meet the financial requirements/demands of their political gladiators be they political parties or the contestants themselves.
“So, by and large, we will notice remarkable activity in the market as this presents opportunity for investors to buy more stocks.”