By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian equities market on Friday succumbed to another bearish week as all-share index (ASI) dipped 1.18 percent to close the week at 40,672.94 basis points.
Similarly, the NSE’s market capitalisation depreciated 1.18 percent to close at N13.430 trillion.
According to the Nigeria’s exchange weekly stock market report, three (3) indices appreciated during the week with the exception of the NSE 30 index (-0.73%), NSE consumer goods index (-0.49%), NSE Lotus II index (-1.75%) and NSE industrial goods index (-1.61%). While the NSE ASeM index closed flat.
Cordros Capital reported that declines persisted for the third week in a row, despite volatile intra-week trading, in which three (3) out of five (5) trading sessions closed in red. ‘’The loss left the month-to-date (MtD) and week-to-date (Wtd) returns at -2.07 percent and -1.59 percent respectively,’’ Cordros reported.
The report further affirmed that despite continuous rallies in some stocks like IKEJAHOTEL and PREMBREW, negative sentiment towards local equities, the anticipation of softer prices in the short/mid-term and impressive returns offered by U.S and Europe equities (which have seen less foreign inflows into naira equities) continue to dampen investors’ appetite.
‘’Declines in DANGCEM, PZ, GUINNESS, PORTPAINT and ASHAKACEM stirred the industrial goods and consumer goods indices to losses of 1.61 percent and 0.49 percent respectively. The banking index topped the gainers chart with a 1.81 percent gain, inspired by the news of an acquisition by Bob Diamond in Union Bank of Nigeria (UBN). The oil/gas and insurance indices also added 1.80 percent and 0.07 percent accordingly,’’ Cordros reported.
Reports from the NSE say the equities market in the review period recorded a turnover of 3.047 billion shares worth N106.701 billion in 23,679 deals were traded this week by investors on the floor of Nigerian bourse compared to a total of 3.280 billion shares valued at N52.808 billion that exchanged hands last week in 25,592 deals.
The NSE said the industrial goods industry (measured by volume) led the activity chart with 1.574 billion shares valued at N90.684 billion traded in 1,095 deals; thus contributing 51.68 percent and 84.99 percent to the total equity turnover volume and value respectively. The financial services industry followed with a turnover of 990.168 million shares worth 9.233 billion in 11,401 deals. The third place was occupied by the conglomerates industry with 150.021 million shares worth N2.342 billion in 2,175 deals.
According to the NSE’s report, trading in the equities of Ashaka Cement Plc, UBA Capital Plc and Dangote Cement Plc (measured by volume) accounted for 1.812 billion shares worth N90.381 billion in 951 deals, contributing 59.48 percent and 84.70 percent to the total equity turnover volume and value respectively.
In terms of summary of price changes at the Nigerian bourse in the period under review, 38 equities appreciated in prices during the week higher than 28 recorded the preceding week. However, 45 equities depreciated in prices lower than 54 reported last week, while 117 equities remained unchanged lower than 118 recorded in the previous week.
The market breadth remained negative at -0.02x, as 31stocks declined while 29 stocks advanced on friday to close the week.
