By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Equities on the Nigerian Stock Exchange (NSE) slumped further as all-share index and market capitalisation went down 5.55 percent week-to-date (w-t-d) to close on Friday at 38,197.73 and N12.613 trillion respectively.
Similarly, all the indices depreciated during the week with the exception of the NSE ASeM Index that closed flat. While Year-to-date (y-t-d) performance of the market stood negative at 7.58 percent.
Leading the downtrend was the Banking index which fell by 7.61 percent, followed by the Industrial Goods which posted a 6.9 percent loss. The Oil & Gas (-6.78 percent) and Consumer Goods (-5.79 percent) indices also underperformed.
Cordros weekly market update reports that the negative trend on the Nigerian bourse is attributed to both global and domestic economic concerns. ‘’Fears of a faltering global economic recovery as well as the falling crude oil prices (given its potential impact on government earnings and the exchange rate) are some of the major scares affecting investors’ sentiments towards the local bourse,’’ the report said.
It added that a benign outlook for the rest of the year in view of the upcoming election also continued to force investors to stay back from the market.
In terms of market breadth, the Nigerian bourse recorded a turnover of 1.885 billion shares worth N23.733 billion in 24,705 deals traded this week by investors compared with a total of 1.351 billion shares valued at N14.471 billion that exchanged hands last week in 14,680 deals.
Also, the negative market breadth further expanded after 69 stocks shed weights while only 13 appreciated, according to the Cordros weekly market update.
The NSE reports that the Financial Services Industry (measured by volume) led the activity chart with 1.446 billion shares valued at N14.789 billion traded in 13,653 deals; thus contributing 76.68 percent and 62.32 percent to the total equity turnover volume and value respectively.
In similar vein, the Conglomerates Industry followed with a turnover of 172.117 million shares worth 1.091 billion in 1,835 deals. The third place was occupied by Services Industry with 88.966 million shares worth N281.340 million in 912 deals.
The NSE report say trading in the top three equities namely- FBN Holdings Plc, Access Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 581.406 million shares worth N4.992 billion in 5,534 deals, contributing 30.84 percent and 21.04 percent to the total equity turnover volume and value respectively.
Summary of price changes at the Nigerian bourse shows that 13 equities appreciated in prices during the week lower than 19 recorded the previous week, 69 equities depreciated in prices higher than 38 of the past week, while 118 equities remained unchanged lower than 143 reported last week.
