By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian Stock on Friday plunged on elections postponement as All Share Index (ASI) dropped for a seventh day to 1.3 percent to close at 27,585.26, the lowest since December 2012.
Similarly, the Nigerian Stock Exchange (NSE) market capitalisation dipped by eight (8) percent to close on Friday at 27,585.26 and N 9.204 trillion respectively.
According to the NSE’s weekly market report, all indices finished lower during the week with exception of the NSE Oil and Gas Index that rose by 0.38 percent, while NSE ASeM Index closed flat.
The equities market took a record plunge this week following the postponement of the elections. Uncertainties about the economy as well as more capital flight from foreign investors to safe havens abroad caused the market to go from a rebound of 1.43 percent last week to a loss of 8 percent this week,” Cordros weekly market report affirmed.
The report says the ASI maintained a bearish streak during all sessions shedding 1,775.29 points Week-on-Week (w/w); bringing the Year-to-Date (YtD) loss from 13.48 percent to 20.41 percent.
“All sector indices recorded losses except the Oil and Gas index with a w/w gain of 0.38 percent from a loss of 0.13 percent last week due to rising oil prices evident during the week. Renewed volatility was prevalent in all trading sessions as investors cashed-in in order to avoid looming pressures in the country, including the erosion of wealth by the falling Naira to N206/$ in the inter-bank market, further stripping the market of whatever prevailing optimism exists,” the Cordros report affirmed.
Cordros added that massive sell-offs were prevalent in all trading sessions causing the Industrial Goods sector index to fall from being the lead gaining index last week to the worst performer this week; from a gain of 4.06 percent to a 9.86 percent w/w plunge.
Also, the report says the Banking and Consumer Goods indices followed closely, shedding 8.94 percent and eight (8) percent w/w respectively. While, the Insurance index dipped by two (2) percent.
The NSE reported a turnover of 1.950 billion shares worth N27.836 billion in 19, 337 deals traded this week by investors on the floor of its bourse compared to a total of 2.027 billion shares valued at N20.627 billion that exchanged hands last week in 23,436 deals.
NSE disclosed that the Financial Services Industry (measured by volume) led the activity chart with 1.521 billion shares valued at N13.760 billion traded in 10,967 deals; thus contributing 78.01 percent and 49.43 percent to the total equity turnover volume and value respectively.
In the same vein, the Consumer Goods Industry followed with a turnover of 177.396 million shares worth N10.822 billion in 3,622 deals. While the third position was occupied by the Conglomerates Industry with 171.830 million shares worth N549.426 million in 1,463 deals.
In terms of market breadth, lenders FBN Holdings Plc, Access Bank Plc, and Guaranty Trust Bank Plc (measured by volume) accounted for 793.727 million shares worth N7.789 billion in 5,168 deals, contributing 40.70 percent and 27.98 percent to the total equity turnover volume and value respectively.
