By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Strong bearish run on Friday persisted at the Nigerian Equities market as all- share index (ASI) and Market Capitalisation went down 1.60% to close the week at 40,444.39 and N13.354 trillion respectively.
Cordros Capital weekly market report say the continued negative performance is the worst since 15th of August this year. Its Year-to-Date (YTD) returns currently stands at 2.14 percent.
The market that traded for only three (3) days due to public holidays saw benchmark index in all three sessions recording decline, ASI dropped 0.54 percent on average each day.
The NSE weekly report says all the indices depreciated during the week with the exception of the NSE Consumer Goods Index that rose by 0.37 percent. ‘’However the NSE ASeM Index closed flat,’’ the report said.
‘’With Q3-14 results due for release (companies have started releasing), investors still prefer to thread on the side of caution as earnings expectations are neutral on average, and market outlook remains subdued by political and economic worries (declining crude oil price and pressure on the Naira),’’ the Cordros report said.
It affirmed that declines in the share prices of several high-capped stocks aided the huge loss recorded this week.
According to the Cordros report, the shares of banks in particular came under serious scrutiny (only two of the sector’s components gained) following a Fitch Ratings’ downgrade of the sector’s 2015 outlook.
The report said despite Access Bank’s and Unity Bank’s impressive Q3-14 results, the Banking index underperformed the market with a loss of 2.9 percent Week-on-Week (w/w). The Oil & Gas index followed with a loss of 2.3 percent meanwhile the Consumer Goods managed to post a 0.37 percent upside.
On its part, Investment One analysts insisted the negative run could be attributed to the performance of the major banks on the floor as key drivers. ‘’Top banking names; ZENITHBANK, GUARANTY, FBNH, STANBIC and UBA shaved off about -200pts off the benchmark index,’’ Investment One said.
It reported that the banking sector accounted for the bulk of trades on the floor (46.1 percent) as investors exited positions in major names in the subsector.
The NSE in its report said a turnover of 1.351 billion shares worth N14.471 billion in 14,680 deals were traded this week by investors on the floor of Nigerian bourse compared to a total of 2.588 billion shares valued at N24.902 billion that exchanged hands last week in 18,750 deals.
It affirmed the Financial Services Industry (measured by volume) led the activity chart with 673.157 million shares valued at N7.011 billion traded in 7,922 deals; thus contributing 49.84 percent and 48.45 percent to the total equity turnover volume and value respectively.
The Nigeria’s Exchange added that the Conglomerates Industry followed with a turnover of 523.359 million shares worth 3.187 billion in 1,056 deals. The third place was occupied by Services Industry with 70.653 million shares worth N176.367 million in 629 deals.
The NSE’s weekly report further affirmed that transactions in top three equities for the week Transnational Corporation of Nigeria Plc, Zenith International Bank Plc and Skye Bank Plc (measured by volume) accounted for 672.382 million shares worth N4.956 billion in 2,771 deals, contributing 49.78 percent and 34.25 percent to the total equity turnover volume and value respectively.
A summary of price changes at the Nigerian bourse in the week under review shows that 19 equities appreciated in prices during the week lower than 40 reported last week. However, 38 equities depreciated in prices higher than 34 recorded the previous week, while 143 equities remained unchanged higher than 126 recorded in the preceding week.
