Trading sentiments on the floor of the Nigerian Stock Exchange (NSE) turned sour last week as the 11th-hour general election shift last week significantly weighed on investors’ appetite for bellwethers.
Instructively, the All-Share Index (ASI) fell by 0.61 per cent to close at 32,515.52 points while the market capitalization closed at N12.126 trillion.
Similarly, all other indices finished lower with the exception of the NSE ASem, NSE Banking, NSE Insurance NSE-AFR Bank Value and NSE Oil/Gas indices which rose by 0.96, 0.68, 0.02, 0.95 and 0.13 per cent respectively
Thirty-four equities appreciated in price during the trading week, lower than 60 in the previous week. Thirty-eight equities depreciated in price, higher than 21 equities of the previous trading week, while 96 equities remained unchanged higher than 87 equities recorded in the preceding week.
Japaul Oil led other stocks with 25 per cent to close at 0.25 kobo per share, emerging top on the gainers’ chart. Associated Bus Company followed with a gain of 23.81 per cent to close at 0.52 kobo, Ikeja Hotel rose by 17.68 per cent to close at N2.13, Presco increased by 13.64 per cent to close at N75 while MCHICHOLS appreciated by 13.33 per cent to close at 0.51 kobo.
On the flipside, Livestock feeds topped the losers’ chart for the week with 19.44 per cent to close at 0.58 kobo per share. Wema Bank was next with 18.45 per cent to close at 0.84 kobo, Vitafoam fell by 16.32 per cent to close at N4, Transcorp decreased by 15.20 per cent to close at N1.45 while Unity Bank shed 13.16 per cent to close at 0.99 kobo.
Trading in the Top Three Equities namely, Transnational Corporation of Nigeria Plc, Sterling Bank Plc and Access Bank Plc (measured by volume) accounted for 421.500 million shares worth N1.274 billion in 2,979 deals, contributing 28.46 and 7.22 per cent to the total equity turnover volume and value respectively.
Hence, a total turnover of 1.481 billion shares worth N17.647 billion in 20,449 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 2.834 billion shares valued at N28.138 billion that exchanged hands last week in 28,739 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.038 billion shares valued at N10.170 billion traded in 12,232 deals; thus contributing 70.07 and 57.63 per cent to the total equity turnover volume and value respectively.
Similarly, the Conglomerates Industry followed with 193.204 million shares worth N306.521 million in 1,330 deals while the Consumer Goods Industry came with a turnover of 72.042 million shares worth N4.381 billion in 2,990 deals.
Reacting, Cordros Capital in an emailed note dated February 21, 2019, said: “In the absence of a positive catalyst, as well as brewing political concerns, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and compelling valuation remain supportive of recovery in the mid-to-long term”.
This was as analysts at Afrinvest said: “In line with our expectation, investors took profit in Thursday’s trading session, we expected further profit taking today (Friday)- eve of the rescheduled presidential election-as investors trade cautiously”