By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian equities market plunged on Friday as all-share index and market capitalisation went down 4.11 percent to close the week at 33,926.18 and N11.241 trillion respectively.
With this development, Year-to Date (YtD) deficit increased by 351 basis points from last week to -17.91 percent.
According to the Nigerian Stock Exchange’s (NSE’s) report, all indices nose-dived during the week with the exception of the NSE Banking index that rose marginally by 0.34 percent and NSE ASEM index by 5.78 percent.
While, Cordros reported that the Industrial index topped the losers chart with a 5.94 percent loss hurt by losses in the shares of cement manufacturers, Ashaka Cement Plc and Dangote Cement Plc.
Also, the Oil/Gas index followed with a 4.39 percent drop, while the Consumer Goods and Insurance indices went down 4.19 percent and 1.67 percent respectively.
Cordros reports that the return of the bears to the Nigerian equities market in the review week is coming as the risk of potential naira devaluation heightened; following the Central Bank of Nigeria’s (CBN’s) move to let the local currency trade 182 kobo lower on Wednesday in spite of moderating pressure on crude oil prices.
‘’Last week’s bulls filtered into Monday’s session (+0.30 percent), however the bears returned from Tuesday, ending the NSE ASI’s positive streak that lasted for six (6) days. Sell-offs grew stronger in successive sessions as investors’ risk appetite further weakened due to the depreciating currency which tumbled all through the week,’’ the Cordros report affirmed.
The NSE on its part reported a turnover of 1.359 billion shares worth N14.565 billion in 20,844 deals traded this week by investors on its bourse compared to a total of 1.850 billion shares valued at N30.863 billion that exchanged hands last week in 27,397 deals.
The Nigerian bourse report say that the Financial Services Industry (measured by volume) led the activity chart with 1.056 billion shares valued at N7.186 billion traded in 10,962 deals; thus contributing 77.70 percent and 49.34 percent to the total equity turnover volume and value respectively.
It added the Conglomerates Industry followed with a turnover of 111.742 million shares worth N618.169 million in 1,465 deals. While the third position was occupied by the Oil and Gas Industry with 65.489 million shares worth N2.046 billion in 2,420 deals.
‘’Trading in the Top Three Equities namely- FBN Holdings Plc, Sterling Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 409.470 million shares worth N2.464 billion in 4,421 deals, contributing 30.14 percent and 16.92 percent to the total equity turnover volume and value respectively,’’ the NSE report added.
A summary of price changes at the Nigerian equities market in the review period shows that 19 equities appreciated in price during the week lower than 51 of the previous week. While 50 equities dropped in price higher than 28 recorded last week. However, 132 equities remained unchanged higher than 122 reported in the preceding week.
