Profit taking on index heavyweights ensured that Nigeria’s stock market gave up gains (3.3 per cent) posted from the previous week.
Evidently, the NSE All-Share Index and Market Capitalization both depreciated by 0.99 per cent to close the week at 27,525.81 and N13.391 trillion respectively.
The market opened the week on a bearish note as the All Share Index declined 0.39 per cent to 27,691.85 points due to sell-offs in Seplat, CCNN and International Breweries. As a result, investors lost N53 billion as market capitalisation fell to N13.471 trillion and YTD loss worsened to -11.9 per cent.
Tuesday’s session saw sell-offs in Dangote Cement, Seplat and GT Bank, which dragged the benchmark index southward as the ASI declined 0.32 per cent to 27,602.77 points. Consequently, investors lost N43 billion as market capitalisation fell to N13.428 trillion while YTD loss worsened to -12.2 per cent.
Gains in the shares of MTNN, Dangote Cement and CCNN pushed the ASI by 0.2 per cent to 27,607.02 points. Consequently, YTD loss settled at -12.2 per cent while market capitalisation rose by N2 billion to N13.430 trillion on Wednesday.
However, the domestic equities market closed in the red on Thursday as the benchmark index shed 0.66 per cent to settle at 27,425.57 points on the back of sell offs in the shares of Dangote Cement, MTNN and Unilever.
Consequently, investors lost N88 billion in value as market capitalisation declined to N13.342 trillion while YTD loss worsened to -12.7 per cent.
Friday’s session saw the index advancing by 0.37 per cent, but the negative out-turns over the other trading days in the week dragged the overall index. Thus, MtD and YtD losses increased to 0.7 and 12.4 per cent respectively.
Analysis by sectors, losses in the Oil & Gas (-10.76 per cent), Banking (-3.46 per cent), and Consumer Goods (-0.64 per cent) indices offset gains in the Insurance (+1.15 per cent) and Industrial Goods (+0.34 per cent) indices and dragged the market to the negative weekly performance.
At the close of transactions on Friday, Seplat topped the losers’ chart with 18.84 per cent to close at N397.70 per share. UACN followed with 17.76 per cent to close at 0.88 kobo, International Breweries dropped 15.22 per cent to close at N9.75, Glaxosmithkline decreased by 13.25 per cent to close at N7.20 while University Press lost 11.61 per cent to close at N1.37.
On the flipside, John Holt topped the gainers’ chart with 19.57 per cent to close at 0.55 kobo per share. Continental reinsurance was next with 11.54 per cent to close at N1.45, Unity Bank increased by 11.11 per cent to close at 0.70 kobo, Mutual Benefits gained 10 per cent to close at 0.22 kobo while Stanbic IBTC rose by 8.57 per cent to close the week at N38.
A total turnover of 713.141 million shares worth N13.295 billion in 16,237 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 2.337 billion shares valued at N19.712 billion that exchanged hands last week in 18,379 deals.
The Financial Services industry (measured by volume) led the activity chart with 401.887 million shares valued at N4.069 billion traded in 8,627 deals; thus contributing 56.35% and 30.60% to the total equity turnover volume and value respectively.
The Conglomerates industry followed with 123.330 million shares worth N197.298 million in 755 deals while the third place was ICT industry with a turnover of 53.887 million shares worth N5.296 billion in 852 deals.
Trading in the Top Three Equities namely, Transnational Corporation of Nigeria Plc, Access Bank Plc and Zenith Bank Plc (measured by volume) accounted for 242.657 million shares worth N1.808 billion in 2,990 deals, contributing 34.03 and 13.60 per cent to the total equity turnover volume and value respectively.
Analysis done by Sunday Sun revealed that investors continued to trade cautiously this week despite President Muhammadu Buhari’s new look cabinet.
News, however, broke out on Wednesday that Ecobank Transnational Incorporated (ETI) had announced that IFC and the funds managed by the IFC Asset Management Company (AMC) have completed the sale of their c.14.1 per cent stake in ETI to Arise B.V. (Arise).
Accordingly, Arise has become a shareholder of reference in ETI with a 14.1 per cent stake.
J. P. Morgan Securities Plc acted as Sole Placement Agent and Sole Financial Advisor to IFC and the funds managed by AMC in this transaction.
Analysts who spoke to Sunday Sun noted that the market would bounce back from its bearish situation this week, but advised investors to tread the cautious path in short term trading.
Cordros Capital said: “We reiterate our view that the blend of a compelling valuation story and positive macroeconomic environment should propel the market in the medium term. However, we advise investors to tread the cautious trading path in the short term”.
Also analysts at Afrinvest said: “In line with our expectations, the equities market posted a bearish performance today and we expect this to continue in the absence of a major economic stimulus”.