By Chinwendu Obienyi
Nigeria’s stock market ended last week, slightly weak with its All-Share Index (ASI) dropping 0.37 per cent week-on-week (w-o-w) to close at 40,120.22 points while market capitalisation fell by N79 billion to close at N20.978 trillion.
This was even as investors’ sustained interest reflected in the value of trading after they staked a total of N19.867 billion on 3.394 billion shares in 26,808 deals, in contrast to a total of 1.806 billion shares valued at N25.966 billion that exchanged hands last week in 14,634 deals.
The market witnessed an unprecedented growth, ending year 2020 by 44.5 per cent growth but losses recorded on the second and last trading days eroded gains from the other trading days of the week, with the index declining 0.37 per cent due to sell-offs in Dangote Cement, Unilever, MTNN and Guinness.
Performances across sectors were broadly positive, although the Industrial Goods index dropped -0.6 per cent index; with Oil and Gas (+13.2 per cent), Insurance (+9.5 per cent), Banking (+3.2 per cent) and Consumer Goods (+2.6 per cent) closed positive.
Speaking on the market’s performance, Cordros Capital, said, “In the short term, we believe positioning for FY 2020 dividends will continue to support buying activity in the market amid negative real returns in the fixed income market even as we do not rule out intermittent profit-taking.
However, we advise investors to take positions in only fundamentally justified stocks as the weak macro economic environment remains a significant headwind for corporate earnings.”
For its part, Afrinvest, said, ‘We expect to see bargain hunting in the coming week. The Consumer Goods Industry (measured by volume) led the activity chart with 2.026billion shares valued at N7.503 billion traded in 4,031 deals; thus contributing about 59.70 per cent and 37.77 per cent to the total equity turnover volume and value respectively.
The Financial Services Industry followed with 939.288million shares worth N7.820 billion in 14,020deals while the Conglomerates recorded a turnover of 139.882million shares worth N182.151 million in 885 deals.
Trading in the top three equities namely Champion Breweries Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc (measured by volume) accounted for 2.144 billion shares worth N6.002billion in 1,971 deals, contributing 63.18 and 30.21 per cent to total equity turnover volume and value respectively.
Despite the loss, fifty securities appreciated in value during the week, higher than thirty-two (32) others in the previous week. But a total of twenty-one securities fell in value, lower than thirty-two (32) equities in the previous week, while ninety (90) equities remained unchanged, lower than ninety-seven (97) recorded in the previous week.
Investors’ appetite for stocks increased as 47 stocks gained against 21 losers. BOC GAS (+32.2 per cent), NEM (+28.5 per cent) and Seplat (+23.3 per cent) led the top gainers while Deap Capital (-12.0 per cent), Royal Exchange (-11.5 per cent) and Dangote Cement (-8.1 per cent) led the decliners.
