By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-All-share index (ASI) and market capitalisation at the Nigerian bourse Friday shed 0.93 percent to close for the week ended June 20, 2014 at 41,129.27 basis point (BPs) and N13.581 trillion respectively.
Contrary to this, the NSE in its weekly report said three (3) of the its indices appreciated during the week with the exception of the NSE 30 index 1.69 percent, NSE banking index 4.96 percent, NSE consumer goods index 2.20 percent and NSE Lotus II 0.86 percent. However, the report said NSE alternative securities market (ASeM) index closed flat.
Cordros in its analysis said the depreciation of 0.93% in the equity market was as a result of bullish trading witnessed within the last five (5) weeks which saw the equity market grow by 7.67 percent and left it vulnerable to profit-taking activities and price correction.
It reported also that the continuous sell-offs in blue-chips like Dangote Cement Plc, Nigerian Breweries and Nestle Nigeria Plc led to the depreciation of 0.93% in the equity market.
Cordros said the market closed on a bearish note despite a Friday rally in the shares of oil marketers, Oando Plc 10.20 percent, Coinoil Plc 10.24 percent, Eterna Oil Plc 9.83 percent, Japaul Oil & Maritime Services Plc 7.69 percent and MRS Oil Plc at 7.67 percent.
Also, the Cordros report said that the announcement of the federal government’s (FG’s) approval of Oando’s acquisition of ConocoPhillips’ Nigeria assets helped sustain the ongoing gaining streak in the oil/gas sector as the NSE sectoral index spiked 14.95 percent w/w.
It further said the insurance and industrial sector also recorded gains of 1.68 percent and 0.20 percent respectively. ‘’Majority of the sell-downs came from the banking sector as evident in declines in Guaranty Trust Bank Plc, Zenith Bank Plc and Ecobank Transnational Incorporated which led to a 4.96 percent decline in the NSE banking index. The consumer goods index also declined by 2.20 percent due to losses in NB and NESTLE,’’ the report affirmed.
On its part, the NSE reported a turnover of 1.528 billion shares worth N20.080 billion in 26,820 deals were traded this week by investors on its bourse compared to a total of 2.732 billion shares valued at N22.165 billion that exchanged hands last week in 26,074 deals.
It said the financial services industry (measured by volume) led the activity chart with 973.567 million shares valued at N7.990 billion traded in 12,764 deals; thus contributing 63.72% and 39.79% to the total equity turnover volume and value respectively. The conglomerates industry followed with a turnover of 194.779 million shares worth N1.046 billion in 2,394 deals. While in the third place was the oil and gas industry with 170.164 million shares worth N3.889 billion in 4,351 deals.
The NSE reported that trading in top three (3) equities, Transcorp, Wapic Insurance Plc and Oando (measured by volume) accounted for 445.754 million shares worth N3.793 billion in 5,126 deals, contributing 29.17 percent and 18.89 percent to the total equity turnover volume and value respectively.
In terms of price changes, the Nigerian bourse recorded that 36 equities appreciated in prices during the week lower than 44 of the previous week. It said 45 equities depreciated in prices higher than 32 of the past week, while 119 equities remained unchanged lower than 124 recorded in the preceding week.
