By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Year-to-Date (YTD) loss at the Nigerian Stock Exchange (NSE) on Friday sunk 19.61 percent at the close of the week as All-Share Index (ASI) hit 33,225.75 points, bringing benchmark index to its lowest since April 29, 2013.
At the end of the week’s transaction, the NSE ASI went down 11.54 percent and market capitalisation 11.54 percent to close N11.002 trillion.
Similarly, all the indices depreciated during the week with exception of the NSE ASeM that closed flat.
A review of the indices shows that the industrial, oil/gas, consumer goods, banking and insurance indices all reported Week-to-Week (w/w) losses of 19.88 percent, 14.71percent, 12.65 percent, 7.39 percent and 3.25 percent respectively.
‘’Though the equities market was bearish last week (owing to the depreciating naira, low investors risk appetite amidst poor corporate releases, security and election fears),’’a Cordros report said.
It affirmed that the bears accelerated this week as the concerns seemed to worsen. ‘’In particular, the week saw the naira hit its all-time low level against the dollar (N170/US$) while the insurgents in the North-East reportedly attacked the plant of one of the quoted cement companies – Ashaka Cement Plc (ASHAKA), a subsidiary of WAPCO,’’ the report added.
Cordros said on the back of these developments, the NSE ASI fell by 11.51 percent w/w, with the biggest losses coming on Friday (-3.68 percent) and Thursday (-4.07 percent, the biggest single-day loss since March 19, 2010).
In terms of market breadth, turnover at the Nigerian equities market nosedived at it recorded 3.778 billion shares worth N26.740 billion in 22,771 deals traded this week by investors compared to a total of 2.097 billion shares valued at N20.231 billion that exchanged hands last week in 21,802 deals.
The NSE reported that the financial services industry (measured by volume) led the activity chart with 3.334 billion shares valued at N17.100 billion traded in 13,676 deals; thus contributing 88.24 percent and 63.95 percent to the total equity turnover volume and value respectively.
It said the conglomerates industry followed with a turnover of 181.563 million shares worth N772.640 million in 1,286 deals. In the third position was the services industry with 90.018 million shares worth N259.194 million in 659 deals.
According to the NSE, trading in the shares of Linkage Assurance Plc, Sterling Bank Plc and Continental Insurance Plc (measured by volume) accounted for 1.518 billion shares worth N1.563 billion in 457 deals, contributing 40.20% to the total equity turnover volume.
While Cordros reported that tier one lenders Zenith Bank Plc (N4.85billion), and Guaranty Bank Plc (N4.08billion) accounted for 43.53 percent of total value of transactions on the Nigerian bourse to close the week.
Still on market breadth, 38 out of the 77 losers posted declines of 10 percent or above for the week, while Friday session saw the NSE recording eight (8) gainers and 50 losers.
A summary of price changes as reported by the NSE shows that one (1) equity appreciated in price during the week lower than 24 of the previous week. 73 equities depreciated in price higher than 54 last week, while 126 equities remained unchanged 121 recorded in the past week.
