The theme of the Easter season failed to lift investors’ sentiment on the Nigerian stock market as the market capitalisation fell by N125 billion in four consecutive session on the bourse.
The market had as at April 18 gained 1.78 per week-on-week (w-o-w) due to most Tier-1 banks reporting strong numbers across lines with market capitalisation settling at N11.301 trillion.
Due to the Easter break, trading resumed Tuesday’s session on a negative footing as the All-Share Index (ASI) declined marginally by 0.03 per cent, to 30,076.00 points, driven by sell off in bellwether banking and consumer goods stocks. Thus, the Month-to-Date and the Year-to-Date returns increased to -3.11 and -4.31 per cent respectively. Wednesday’s trading session saw the benchmark index down by 0.59 per cent due to sell pressure in large capitalised stocks with the market capitalisation falling further by N69 billion to close at N11.2 trillion while YTD return declined to -4.9 per cent.
However, the equities market halted its two-day bearish run on Thursday to close on a positive note as the ASI increased by 0.07 per cent, to 29,919.44 points, driven by gains in bellwether Banking and Consumer Goods stocks.
The Month-to-Date and the Year-to-Date losses moderated to -3.61 and -4.81 per cent respectively while market capitalisation rose by N8 billion to settle at N11.244 trillion.
Friday’s session on the bourse saw the bears regain hold on the market as the ASI fell by 0.60 per cent to close the week at 29,740.41 points.
The market capitalisation fell by N68 billion to close at N11.176 trillion as market breadth closed negative with 26 stocks depreciating in value while 23 others appreciated.
Okomu Oil topped the losers’ chart with 10 per cent to close at N72 per share. Union Dicon was next with 9.67 per cent to close at N12.15, Premier Paints fell by 9.62 per cent to close at N9.40 while Prestige and ABC Transport both declined by 9.09 per cent each to close at 0.50 kobo and 0.30 kobo per share.
On the flipside, Dangote Flour topped the gainers’ chart with 9.89 per cent to close at N15.55 per share. Neimeth followed with 9.84 per cent to close at 0.67 kobo, Cutix increased by 9.63 per cent to close at N2.05, Forte oil gained 9.36 per cent to close at N29.20 while Oando Plc garnered 9.28 per cent to close at N5.30.
Japaul Oil led in terms of volume of shares sold on Friday with 56.55 million shares valued at N15.080 million. UBA traded 29.98 million shares valued at N205.55 million while Wema Bank sold 25.31 million shares worth N18.834 million.
Overall, the volume and value of shares traded stood at 244.57 million units and N1.54 billion, respectively exchanged in 3,444 deals.
Analysts at Afrinvest said in an emailed note to Sunday Sun dated April 25, “we do not rule out the possibility of profit taking amidst corporate earnings releases”.
For their part, analysts at Cordros Capital said: “We reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for a market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term”.