Business

NIGERIA: No Respite as Stock Market Remains Downbeat

The Nigerian equities market continued its poor run last week as most investors adopted a wait-and-see approach throughout the week leading to three days of losses.
 
However, The market was able to recoup some gains by the end of the week following drive by bargain hunters to take advantage of highly discounted stocks.
 
But there are indications that the market may experience a turnaround if the central bank reverses the CRR hike at the end of its MPC meeting starting today.
 
Dragged down by massive sell pressure, the market had failed to live up to investors’ expectations the previous week, despite the appreciable full year results released by Guaranty Trust Bank Plc, Zenith Bank Plc and Cadbury Nigeria Plc. 
 
Some traders are still of the opinion that the market will soon begin to find its bearing as more positive results hit the market.
 
Meanwhile, despite the resurgence towards the end of last week, its performance in the first three days of the week impacted the market negatively as the Nigerian Stock Exchange (NSE) All-Share Index or ASI and the market capitalisation of listed equities depreciated by 1.00 per cent to close last Friday at 37,790.12 and N12.139 trillion respectively.
 
In the same vein, All the NSE sectoral Indices depreciated during the week with the exception of the NSE Banking Index, while the NSE ASeM closed flat.
 
Summary of Daily Performance
The market had started the week under review on a poor note as Exchange’s benchmark index went down by 0.74 per cent or 282.85 points to close at 37,888.47 from 38,171.32 attained the previous Friday.
 
Trading activities also reduced by 63.96 per cent as investors bought 219.70 million shares worth N2.41 billion in 4,091 deals, compared to 609.58 million shares worth N3.74 billion in in 4,033 deals exchanged on the day.
 
Diamond Bank Plc, FBN Holdings Plc, and TRANSCORP Plc, were the most actively traded stocks on the exchange last Monday, while FBN Holdings Plc, Zenith Bank Plc and Guaranty Trust Bank Plc topped the list in terms of market value.
 
The market depreciated further the next day as index dropped by 1.62 per cent or 614.43 points to close at 37,274.04 from 37,888.47 attained on Monday. Market capitalisation also decreased to N11.972 trillion from N12.170 trillion on Monday.
 
Conversely, trading activities on the exchange appreciated by 31 per cent as investors bought 286.79 million shares worth N4.54 billion in 4,798 deals, compared to 219.70 million shares worth N2.41 billion in in 4,091 deals exchanged on Tuesday. UBA Plc, Guaranty trust bank Plc and Transnational Corporation of Nigeria Plc were the most actively traded stocks on the exchange on Tuesday.
 
The bears sustained their hold on the market on Wednesday as the benchmark index depreciated by 0.37 per cent or 137.44 points to close at 37,136.60 from 37,274.04 attained on Tuesday.  Also, trading activities depreciated by 11 per cent as investors bought 254.14 million shares worth N3.64 billion in 4,270 deals, compared to 286.79 million shares worth N4.54 billion in 4,798 deals exchanged on Tuesday.
 
The market returned northward on Thursday as the market index grew by 0.46 per cent or 172.00 points to close at 37,308.60 from 37,136.60 attained on Wednesday.  However, trading activities on depreciated by 11 per cent as investors bought 320.34 million shares worth N375 billion in 5,005 deals, compared to 254.14 million shares worth N3.64 billion in 4,270 deals exchanged on Wednesday.
 
The market ended the week on a positive note as the benchmark index went up by 1.29 per cent or 481.52 to close at 37,790.12 from 37,308.60 attained on Thursday. The market capitalisation also increased to N12.138 trillion from N11.983trillion on Thursday.
 
Investors however bought and sold fewer shares as trading activities depreciated by 11 per cent. Investors bought a total of 309.71 million shares worth N5.06 billion in 4,363 deals, compared to 320.34 million shares worth N3.75 billion in 5,005 deals exchanged on Thursday, Guaranty Trust bank Plc, Zenith Bank Plc and UBA Plc were the most actively traded stocks on the exchange last Friday.
 
Market Turnover
Analysis of trading activity for the week showed that a turnover of 1.391 billion shares worth N19.414 billion in 22,527 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.989 billion shares valued at N15.098 billion that exchanged hands the previous week in 21,948 deals.
 
The Financial Services Industry (measured by volume) led the activity chart with 1.124 billion shares valued at N11.977 billion traded in 13,085 deals; thus contributing 80.79 per cent and 61.70 per cent to the total equity turnover volume and value respectively.
 
The Consumer Good Industry followed with a turnover of 86.061 million shares worth N4.960 billion in 4,282 deals. The third place was occupied by the Conglomerates Industry with 78.954 million shares worth N461.835 million in 1,218 deals.
 
Trading in the top three equities namely- Zenith International Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc (measured by volume) accounted for 440.315 million shares worth N8.073 billion in 4,969 deals, contributing 31.66 per cent and 41.58 per cent to the total equity turnover volume and value respectively.
 
Also traded during the week were a total of 152,511 units of Exchange Traded Products (ETPs) valued at N3.131 million executed in 23 deals compared with a total of 4.283 million units valued at N82.146 million transacted last week in 102 deals.
 
Similarly, 3,350 units of FGN bonds valued at N3.751 million were traded this week in 7 deals compared with a total of 12,896 units of FGN bonds valued at N14.551 million transacted last week in 7 deals..
 
Gainers and Losers
Meanwhile, the price movement chart of the NSE displayed a total of 19 equities that appreciated in prices during the week higher than 18 equities of the preceding week. Fifty-six equities depreciated in prices lower than 65 equities of the preceding week, while 123 equities remained unchanged higher than115 equities in the previous week.
 
The top 10 gainers in the top 10 category were:  Guaranty Trust Bank Plc (N1.95), Stanbic IBTC Holdings Plc (N1.50), Nigerian Breweries Plc (N 7.39), 7-UP Bottling Company Plc (N4.23) FBN Holdings Plc (78 kobo), Union Dicon Salt Plc (63 kobo), AIICO Insurance Plc (8 kobo), CCNN (39 kobo),  FCMB Group Plc (13 kobo), and UTC Nigeria Plc  (3 kobo).
 
On the other hand, the top 10 losers included: Flour Mills Nigeria Plc (N8.75), International Breweries Plc  (N2.57), Ashaka Cement Plc (N2.16), Livestock Feeds Plc (46 kobo),  African Prudential Registrars (79 kobo),  Portland Paints Products Nigeria Plc (94 kobo), Costain (WA) Plc (25 kobo), University Press Plc (54 kobo), FIDSON Healthcare Plc (34 kobo), and  WAPIC Insurance Plc (9 kobo).

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