Due to continued risk-off sentiments on the floor of the Nigerian Stock Exchange (NSE) transactions extended its decline amidst mixed earnings performances from quoted companies.
Thus, after recording losses on four trading days during the week, the All Share Index (ASI) dipped by 0.4 per cent w/w to 26,348.73 points – lowest since May 5, 2017 – with the Month-to-Date (MTD) and Year-to-Date (YTD) losses increasing to -4.6 and -16.2 per cent, respectively.
The bears had continued to dominate the domestic equities market on Monday as the benchmark index dipped by 0.22 per cent to 26,390.08 points. Consequently, the Month-to-Date and Year-to-Date return worsened to -4.49 and -16.04 per cent.
Sell pressures persisted in the local bourse on Tuesday as losses extended into the second consecutive session. Losses in MTNN, DANGCEM and FCMB dragged the All-Share Index (ASI) Southwards, shedding 0.09 per cent to settle at 26,365.83 points while YTD return worsened to -16.1 per cent. Consequently, market capitalisation declined by N12 billion to close at N12.8 trillion.
However, Nigeria’s equities market halted its losing streak, as late interest in DANGCEM drove the market to a positive return on Wednesday. Hence, the benchmark index widened by 0.12 per cent to settle at 26,397.94 points. Consequently, the Month-to-Date and Year-to-Date losses moderated to -4.46 and -16.01 per cent, respectively.
The domestic equities market resumed its descent on Thursday, as the benchmark index dipped by 0.15 per cent to 26,357.24 points, following sell-offs in the shares of GT Bank and Guinness. Consequently, the Month-to-Date and Year-to-Date losses worsened to -4.61 and -16.14 per cent.
Friday was not any different as the ASI fell by 0.03 per cent to close at 26, 348.73 points while market capitalisation closed the week at N12.826 trillion as against N12.875 trillion last week.
This means that investors lost a total value of N49 billion in five trading sessions.
Performance across the sectors was broadly weak, with the Industrial Goods (-1.5 per cent), Insurance (-1.7 per cent), Consumer Goods (-0.6 per cent), Banking (-0.4 per cent) and Oil & Gas (-0.3 per cent) indices all closing in the red.
Market breadth was negative as 14 stocks depreciated in value while 12 others appreciated. Guinness topped the losers’ chart with 9.83 per cent to close at N23.85 per share, Cileasing followed with 9.59 per cent to close at N6.60, Custodian dropped 9.17 per cent to close at N5.45, Forte Oil decreased by 8.81 per cent to close at N16.05 while CCNN lost 6.25 per cent to close at N15.
On the flipside, UAC-Prop topped the gainers’ chart with 8.08 per cent to close at N1.07 per share. Sterling Bank was next with 4.86 per cent to close at N1.94, Union diagnostics increased by 4.55 per cent to close at 0.23 kobo, Wema Bank garnered 3.64 per cent to close at 0.57 kobo while Access Bank rose by 2.82 per cent to close at N7.30.
Reacting, analysts who spoke to Sunday Sun, said that valuations remain attractive for stock traders while calling on the government and regulatory authorities to address the challenges affecting the dwindling performance of the stock market.
President, Pearl Awards Nigeria, Tayo Orekoya, said that the nation’s economy is in dire need of sustainable growth to ensure stability in the capital market.
Expressing dissatisfaction over the unstable condition of the capital market, Orekoya added that the instability has continued to have a negative impact on investor’s confidence and called on government, regulatory authorities to address the challenges affecting the dwindling performance of the stock market.
“The stakeholders of our capital market in collaboration with the government must continue to strive towards market stability, sustainability and growth. Regulators in particular must intensify efforts towards utilizing innovative approaches towards engendering restoration of foreign and national investors and deepening the market for enhanced development”, Orekoya noted.
On their part, analysts at Cordros Capital said: “In our view, the trend witnessed through the year is likely to persist through the final quarter of the year, although we expect pockets of gains over the final months of the year as fund and portfolio managers realign portfolios prior to the start of 2020.
Nonetheless, we note that valuations remain attractive driven by price deterioration throughout the year. Hence, we advise long-term investors to take positions in the market, given currently attractive valuations”.
A total turnover of 2.051 billion shares worth N16.126 billion in 13,508 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 896.610 million shares valued at N16.561 billion that exchanged hands last week in 12,638 deals.
Trading in the Top Three Equities namely, Omoluabi Mortgage Bank Plc, Zenith Bank Plc and Transnational Corporation of Nigeria Plc; (measured by volume) accounted for 1.388 billion shares worth N9.067 billion in 2,221 deals, contributing 67.69 per cent and 56.22 per cent to the total equity turnover volume and value respectively.