By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Bearish trading accelerated this week as benchmark index at the Nigerian Stock Exchange (NSE) and market capitalisation dipped 7.42 percent Week-on-Week (WoW) to close at 30,763.38 and N10.156 trillion respectively.
The NSE weekly reported that all the indices drifted lower during the week with exception of the NSE ASeM Index that rose by 2.05 percent.
According to Cordros weekly market update the development is as a result of offshore portfolio investors continued exit from the Nigerian equities market amidst mounting security and macroeconomic concerns.
A review of market indices in the week which commenced and concluded on a negative note as equities market failed to record a single bullish session, with bearish trading prevalent across all sectors of the market shows that the Consumer Good index topped the losers’ chart with a 10.08 percent decline, the Insurance index followed with a 9.64 percent loss, while the Oil/Gas dropped by 7.72 percent.
Similarly, the Banking and Industrial indices also went down 7.23 percent and 5.53 percent respectively.
In terms of market breadth, the Nigerian bourse reported a turnover of 1.810 billion shares worth N28.918 billion in 20,677 deals were traded this week by investors compared to a total of 1.526 billion shares valued at N24.992 billion that exchanged hands last week in 21,344 deals.
The NSE further reported that the Financial Services Industry (measured by volume) led the activity chart with 1.370 billion shares valued at N13.783 billion traded in 11,742 deals; thus contributing 75.69 percent and 47.66 percent to the total equity turnover volume and value respectively.
‘’The Consumer goods index followed with a turnover of 137.115 million shares worth N9.368 million in 3,583 deals. The Conglomerates Industry emerged third with 93.133 million shares worth N567.167 million in 1,256 deals,’’ the NSE report said.
In the week under review, the NSE reported that trading in the shares of Guaranty Trust Bank Plc, FBN Holdings Plc and Diamond Bank Plc (measured by volume) accounted for 624.388 million shares worth N9.188 billion in 5,090 deals, contributing 34.50 percent and 31.77 percent to the total equity turnover volume and value respectively. Thus, the lenders emerged the top three (3) traded equities at the Nigerian bourse in the review week.
A summary of prices changes at the NSE at the end of the week’s trading shows that 10 equities appreciated in price during the week lower than 26 of the previous week.
Sixty-eight (68) equities declined in price higher than 49 of the past week, while 119 equities remained unchanged lower than 122 reported last week.
This is coming on the heels of sliding global crude oil prices; falling below the revised budget benchmark of $65/bbl on Wednesday. Also, terrorist attacks increased significantly this week and the external reserves continued to deplete.