By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian stock exchange (NSE) all-share index (ASI) closed the week -1.34 percent (-1.34%) down for the second consecutive week.
Weekly stock market reports from analyst shows that the NSE ASI depreciated by -1.34% to a 6-1/2 lowto close at 38,295.74 basis points, compared with the depreciation of -1.47% recorded the previous week.
Reports say that indices were brought down due volatile banking sector, a day after Lamido Sanusi, governor of Nigeria’s central bank was suspended which created a broad financial selloff.
The NSE reported that all of its sector indices depreciated during the week with the exception of one. Similarly, NSE 30 depreciated by 1.49% to close at 1,715.95, NSE Insurance by 1.30% to close at 141.72, NSE Lotus II by 0.99% to close at 2,811.18.
While the NSE Consumer Goods index depreciated by 1.20% to close at 984.06, NSE Banking index edged lower by 2.50% to close at 359.34, the NSE Industrial Goods index sheds 0.72% to close at 2, 532.30. However, the NSE Oil/Gas rose by 1.68% to close at 305.58 while the NSE-ASeM closed flat.
On the other hand, Investment One Financial Services Research for the review week said that the equities market after making a gradual recovery till mid-week, the benchmark index plummeted by a sum of 2.82% in the last two (2) trading days of the week to close at 38,925.
The report affirmed that Dangote Cement Plc (DANGCEM) was unable to buoy the index as it dipped 2.05%, constituting a major drag on the benchmark further assisted by the Tier 1 banks.
Investment One Research reports that the suspension of Sanusi and general unease about the apex bank independence at the moment has left the benchmark depressed at -7.34% YTD return. Performance on the index for the month has also plummeted by -5.61% so far.
In the same vein, market capitalisation dipped by N226.79 billion from the beginning of the week to settle at N12.30 trillion.
According to the Investment One Research, a total of 520.43 million units of shares valued at N3.51 billion were traded on Friday. This marks a 7.6% rise in volumes traded and 27.7% drop in turnover on the Nigerian bourse. ‘’Most of the activity recorded was from the banking sector which contributed 64% and 74% of volume traded and turnover,’’ the Investment One Research said.
The report further affirmed that the banking sector continued to suffer the brunt of investors’ bearish sentiment as it fell 2.25%. This decline can be attributed to ACCESS, UBA and GUARANTY in that order. Insurance tickers such as GNI and MANSARD contributed to the sector’s 1.82% drop. The Industrials as well closed red, shedding 1.14%. In the same vein, the consumer goods space saw a 0.55% dip. Sell pressure on OANDO and ETERNA reversed as they both accounted for the Oil & Gas sector’s 1.43% gain.
A summary of price changes from the NSE’s weekly report shows that 17 equities appreciated in prices during the week higher than 16 recorded the previous week.
While 62 equities depreciated in prices lower than 67 of the past week, while one 118 equities remained unchanged higher than 115 reported last week.