Transactions iNigeria’s equity market sustained its lackluster performance this week, amidst continued risk-off sentiments and the absence of positive market catalysts.
With losses recorded in two of the three trading sessions in the shortened week due to festive season, the All-share index shed -0.41 per cent to settle the Month-to-Date (MtD) and Year-to-Date (YtD) losses at -2.17 and 15.95 per cent, respectively.
Sell-offs in MTNN, FBN Holdings and ETI dragged the index 1.55 per cent lower to close at 26,115.80 points at the close of Monday’s transactions.
Accordingly, investors lost N197.4 billion as market capitalisation fell to N12.6 trillion while the Year-to-Date (YTD) return settled at -16.9 per cent.
Tuesday’s session saw Santa Claus failing to show up for equity investors trading on the floor of the Nigerian Stock Exchange (NSE) as sell-pressures in Stanbic, GT Bank and Dangote Sugar ensured the market’s Year-to-Date (YTD) returns declined further to -16.99 per cent.
As at the close of trading, the market’s All Share Index (ASI) sustained its bearish run, depreciating by 0.99 per cent to close at 26,090.88 points while investors lost N11 billion as market capitalisation settled at N12.595 trillion.
There was, however, no activity on Wednesday and Thursday as the market observed the Christmas and Boxing day holidays.
Friday’s session saw the market index up by 1.25 per cent to close the week at 26,416.48 points while market capitalisation increased by N157 billion to close the week at N12.752 trillion. This meant that investors lost a total value of N52 billion in one week.
On Sectoral performances, the Banking (-0.26 per cent) and Industrial Goods (-0.31 per cent) recorded declines, following selloffs of GT Bank (-2.0 per cent) and CCNN (-3.0 per cent) stocks. Conversely, Consumer Goods (+1.3 per cent), Insurance (+1.0 per cent), and Oil & Gas (- 0.7 per cent) edged higher, driven by gains in Nestle (+10.0 per cent), NEM (+2.2 per cent) and Oando (+6.76 per cent).
Access Bank was top on the activity chart with the sale of 42.03 million shares valued at N418.40 million. UBA traded 28.37 million shares worth N196.33 million while GT Bank transacted 22.78 million valued at N660.51 million.
The volume and value of stocks traded on Friday, stood at 222.51 million units and N3.04 billion, exchanged in 2,540 deals.
As at December 24, market breadth was negative as 12 stocks depreciated in value while 10 stocks appreciated.
Law Union topped the losers’ chart with 9.09 per cent to close at 0.50 kobo per share, Wapic followed with 8.33 per cent to close at 0.33 kobo, Dangote Sugar fell by 5.54 per cent to close at N13.56, FCMB declined to 4.76 per cent to close at N1.80 while Jaiz Bank dropped 4.29 per cent to close at 0.67 kobo.
Experts who spoke with Sunday Sun, said that despite the bearish performance, the Nigerian capital market remains an investment destination while adding that some pocket of gains should be expected prior to the start of the new year.
Chief Executive Officer, Sofunix Investment and Communications, Sola Oni, noted that the capital market operated under a tough economic climate in 2019 as evident in incessant bearish trend until the policy of the Central Bank of Nigeria on Open Market Operations (OMO) crashed yields on fixed income securities.
Oni said that the outlook for the market in 2020 is attractive, but is down to fixing of Nigeria’s weak economy where the Gross Domestic Product (GDP) currently grows at 2.3 per cent while the country’s population grows at 2.6 per cent, which is a misnomer.
“The capital market operated under a tough economic climate in 2019 as evident in incessant bearish trend until the policy of the Central Bank of Nigeria on Open Market Operations (OMO) crashed yields on fixed income securities.
“Expectedly, investors took flight for safety and reverted to purchase of equities with multiplier effects on the rise in many performance indicators but still, I will say that the NSE remains an investment destination,” he said.
On their part, Cordros Capital, in its weekly note, said: “We see the level of activity and volatility being sustained over the final days of the year, with some pockets of gains expected, as fund and portfolio managers realign portfolios prior to the start of 2020”.