By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE) – All-share index (ASI) of Nigerian equities and market capitalisation on Friday went down 3.81 percent to close at 33,228.29 and N10.970 trillion respectively.
The Nigerian Stock Exchange (NSE) weekly stock market report said all the indices edged lower during the week with exception of the NSE Insurance index that climbed up 5.82 percent inspired by the AXA 77 percent acquisition in the shares of Mansard Insurance Plc. Similarly, the NSE ASeM index closed flat.
Current year-to-date (YTD) ASI at the Nigerian equities market has depreciated 19.6 percent.
A review of the indices performance shows that the Banking index was the most hit with a 4.63 percent fall this week, and has lost 5.48 percent since the Central Bank of Nigeria’s (CBN’s) decision to raise private sector Cash Reserve Requirement (CRR) to 20 percent.
The Industrial index followed with a decline of three percent (3%), while the Oil/Gas and Consumer Goods index also declined 2.53 percent and 1.53 percent respectively.
According to Cordros weekly market update, bearish trend returned to the Nigerian equities market in the first week of December due to thezigzag week-on-week (w/w) trading pattern which continued this week after the gain recorded last week.
Cordros reported that the negative sentiments following the conclusion of the OPEC meeting on the November 27 spilled into this week’s sessions, as the equities market declined by a total of 3.96 percent in four (4) consecutive sessions to close at 33,175.78 points on Thursday.
The report further affirmed that foreign investors continued to exit the market amid fears that the declining oil prices would lead to further naira fall.
In terms of market breadth, the Nigerian bourse in the week under review recorded a turnover of 1.526 billion shares worth N24.992 billion in 21,344 deals traded by investors compared to a total of 2.092 billion shares valued at N28.234 billion that exchanged hands last week in 22,865 deals.
The report said the Financial Services Industry (measured by volume) led the activity chart with 1.177 billion shares valued at N14.232 billion traded in 12,082 deals; thus contributing 77.13 percent and 56.95 percent to the total equity turnover volume and value respectively.
‘’The Conglomerates Industry followed with a turnover of 96.730 million shares worth N618.352 million in 1,211 deals. The third place was occupied by the Consumer Goods Industry with 88.039 million shares worth N5.919 billion in 3,568 deals.
Reports from the NSE in the review period say that trading in the Top Three Equities namely- FBN Holdings Plc, Ecobank Transnational Incorporation Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 560.299 million shares worth N9.388 billion in 5,218 deals, contributing 36.71 percent and 37.56 percent to the total equity turnover volume and value respectively.
A summary of price changes at the nation’s stock market shows that 26 equities appreciated in price during the week lower than 51 of the past week. 49 equities depreciated in price higher than 20 equities recorded the past week. However, 122 equities remained unchanged lower than 126 reported in the previous week.
