Chinwendu Obienyi

Despite the shorter trading week, following the two-day holiday declared by the Federal Government to mark the Eid-El-Kabir celebrations, a total turnover of 726.607 million shares worth N10.459 billion in 12,915 deals were traded last week by investors on the floor of the Exchange.

This is even as the stock market’s year-to-date (YTD) loss worsened to -14.3 per cent following sustained sell pressures which dragged the benchmark All Share Index (ASI) down by 1.4 per cent week-on-week (W-o-W) to settle at 26,925.29 points while a total of N186 billion was shaved off the market capitalisation which closed the week at N13.121 trillion.

Performance across sectors was bearish as five of the six indices trended southward. The Consumer Goods index led laggards, down 6.6 per cent on the back of sustained sell pressures in Unilever (-12.8 per cent) and Nestle (-10.0 per cent).

The Industrial Goods index shed 4.2 per cent on account of losses in Wapco (-6.7 per cent). Similarly, the oil & gas and banking indices lost 1.9 and 1.1 per cent respectively as investors exited their positions in Oando (-9.5 per cent) and ETI (-17.2 per cent). Profit taking in LawUnion (-15.4 per cent) and Lasaco (-8.3 per cent) dragged the Insurance index by 0.7 per cent lower. On the flip side, the AFR-ICT index emerged the lone gainer, up by 1.8 per cent as MTNN (+3.1 per cent) buoyed performance.

The Financial Services industry (measured by volume) led the activity chart with 554.910 million shares valued at N6.499 billion and traded in 8,376 deals; thus contributing 76.37 and 62.14 per cent to the total equity turnover volume and value respectively.

The Conglomerates followed with 76.161 million shares worth N86.854 million in 621 deals, while the Consumer Goods industry recorded a turnover of 29.783 million shares worth N754.919 million in 1,855 deals.

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Trading in the top three equities namely Guaranty Trust Bank Plc, Zenith Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 303.101 million shares worth N5.404 billion in 2,842 deals, contributing 41.71 and 51.67 per cent to the total equity turnover volume and value respectively.

Fifteen  equities appreciated in price during the week, higher than the 12 equities of the previous week. Thirty-four equities depreciated in price, lower than the 43 equities in the previous week, while 119 equities remained unchanged, higher that 113 equities recorded in the preceding week.

Reacting, market analysts have enjoined investors to brace up for tough times as the harsh economy is affecting the capital market.

Cordros Capital in an emailed note to investors said:

“Going forward, we still hold the view that the blend of a compelling valuation story, together with a positive macroeconomic picture , leaves scope for market recovery over the medium term. However, we guide investors to thread the cautious path in the short term”.

For their part, analysts at Afrinvest said: “Following the bearish performance this week, we expect sell pressures to dominate in the near-term, given the generally negative mood and absence of catalyst to spur investor interest”.