After two consecutive weeks of gains, investors began to book profits thus leading to a weak performance in the equities market week on week (w-o-w).
Consequently, the All Share Index (ASI) declined by 2.5 per cent while market capitalisation decreased by N294.7bn to close trading for the week at N11.4 trillion.
Bellwether stocks such as DANGCEM, NIGERIAN BREWERIES, ETI, UBA and STANBIC, which enjoyed price appreciation in previous weeks, were the major drags to performance as investors sold off and reduced positions.
This could be attributed to traders reacting to the division in the Senate over the suspension of the Chief Justice of Nigeria (CJN), Justice Walter Onnoghen last week.
Furthermore, activity level softened during the week relative to the prior week as average volume and value traded declined by 15.2 and 6.1 per cent to 305.5 million units and N3.2 billion respectively.
UBA (210.4 million units), Zenith (116.4 million units) and Diamond (75.4 million units) led the top traded stocks by volume while Zenith (N2.7 billion),and Nigerian Breweries (N1.6 billion) led by value.
Across sectors, performances were bearish as four of five indices trended southwards W-o-W.
The Industrial Goods index declined the most, down 3.7 per cent due to sell pressures in Dangcem (-2.1 per cent) and WAPCO(-0.8 per cent ).
Similarly, the Consumer Goods and Banking indices trailed, shedding 3.4and 2.5 per cent on the back of losses in Nigerian Breweries(-7.4 per cent), Nestle (-2.1 per cent), Guinness (-8.5 per cent),UBA (-7.1 per cent ) and ETI (-6.3 per cent).
Furthermore, losses in AIICO (-9.9 per cent) and MANSARD (-0.5 per cent ) weighed on the Insurance index (-2.2 per cent) while the Oil & Gas index was the lone gainer, up 0.1 per cent due to buy interest in Total (+4.1 per cent) and Oando (+2.1 per cent).
Finally, investor sentiment as measured by market breadth (advance/decline ratio) softened to 0.3x from 1.8x recorded the prior week as 16 stocks advanced relative to 46 stocks that declined.
The best performers for the week was Abctrans (+24.1 per cent), Mbenefit (+10.0 per cent ) and Betaglas (+9.1 per cent) while Nigerins (-15.4 per cent),Dangflour (-10.8 per cent) and Ikeja Hotel(-10.7 per cent) led laggards.
Reacting, Analysts at Afrinvest in an emailed note to Sunday Sun, noted that “this further confirms that investors are still on the sidelines and may only take short term positions till post-election stability is established.
“As we move into a new month, we maintain our bearish outlook on the market, although the earnings season could see market rally in the period.”