WEEKLY REPORT
By Goddy Egene and Nosa Alekhuogie
It was a battle between the bears and bulls at the stock market last week, a battle that the bears eventually won. The market had in the previous week rebounded with a growth of 0.28 per cent on renewed demand for banking stocks. However, the optimism by investors was not sustained last week, thereby returning the market south.
Although investors’ preference for banking stocks remained strong last week, losses by Forte Oil Plc, Nestle Nigeria Plc, Dangote Cement Plc, Diamond Bank Plc and Nigerian Breweries Plc dragged the market to close in the bears’ territory.
Consequently, the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) went down by 0.39 per cent to close at 26,223.54, while market capitalisation ended at N9.023 trillion.
Similarly, all other indices finished lower during the week with the exception of the NSE Banking, NSE Insurance, NSE Pension indices that appreciated by 1.80 per cent, 1.00 per cent and 0.19 per cent respectively while the NSE ASem Index closed flat.
Daily Market performance
Trading at the stock market resumed on positive note on Monday following continued strong demand for banking Stocks. The NSE ASI rose by rose by 0.18 per cent to close at 26,373.83. The market had bounced back last week on the high demand for banking stocks.
That trend continued on Monday as out of the 17 price gainers, eight were banking stocks led by Diamond Bank Plc with 7.2 per cent to close at N1.19 per share. Ecobank Transnational Incorporated chalked up 4.4 per cent, just as Sterling Bank Plc garnered 3.9 per cent. Access Bank Plc, Zenith Bank Plc and Stanbic IBTC appreciated by 2.9 per cent, 2.1 per cent, and 1.9 per cent respectively. Also, Unity Bank Plc and United Bank for Africa Plc rose by 1.7 per cent and 0.20 per cent in that order.
Other non-banking stocks yesterday included: NAHCO Plc (4.4 per cent); Eterna Plc(2.3 per cent); Mobil Oil Nigeria Plc (2.09 per cent); Flour Mills of Nigeria Plc (0.61 per cent).
Conversely, NCR Nigeria Plc led the price losers with 4.9 per cent, trailed by Total Nigeria Plc rising by 4.8 per cent. Cutix Plc, A.G. Leventis Nigeria Plc, Guinness Nigeria Plc and Seven-Up Bottling Company Plc 4.5 per cent, 4.3 per cent, 4.1 per cent and 3.9 per cent in that order.
In terms of sectoral performance, the NSE Banking Index led others, rising 1.3 per cent lifted gains by Zenith Bank, ETI, Access Bank. Yesterday’s gains by the sector made the fourth consecutive time to lead other sectors.
Contrarily, the NSE Insurance and NSE Oil & Gas Indices closed 0.6 per cent lower apiece, dragged by losses in Continental Reinsurance (-3.6 per cent), WAPIC Insurance (-1.9 per cent), Total (-4.9 per cent) and Forte Oil (-0.6 per cent). Similarly, the NSE Consumer Goods Index went down by 0.4 per cent to closed in the red for the 10th consecutive session on the back of sell-offs in Guinness (-4.1 per cent) and Seven-Up (-3.9 per cent).
Investors staked N1.18 billion on 174 million shares in 3,075 deals. The three most actively traded sectors were: Financial Services (144.85 million shares), Conglomerates (9.62 million shares), and HealthCare (7.25 million shares), while most traded sectors were: Diamond Bank (38.69 million shares), Fidelity Bank (29.57 million shares) and Stanbic IBTC (11.97 million shares).
After three days of positive performance the market caved in to the pressure of bears on Tuesday. The market ended negatively following losses by high capitalised stocks. Although banking stocks remained in high demand on Tuesday, depreciation suffered by some highly stocks led to the NSE ASI declining by 0.36 per cent to close at 26,278.20.
Nestle Nigeria, Nigerian Breweries Plc, Forte Oil, Guinness Nigeria Plc, UAC of Nigeria, which are among the highly capitalised stocks made the price losers’ chart yesterday. However, Seven-Up Bottling Company led, declining by 5.0 per cent to close at 101.65. N.E.M Insurance Plc trailed with 4.7 per cent, while NPF Microfinance Bank Plc and A.G Leventis Nigeria Plc went down by 4.5 per cent. Forte Oil Plc lost 4.4 per cent, just as ETI and Cutix Plc went down by 4.1 and 4.0 per cent in that order.
Nestle, UACN, Dangote Flour Mills Plc, African Prudential Registrars Plc, Livestock Feeds Plc, Fidson Healthcare and Nigerian Breweries Plc shed 3.6 per cent, 2.4 per cent, 1.7 per cent, 1.5 per cent, 1.2 per cent and 0.8 per cent and 0.5 per cent respectively.
On the positive side, Unity Bank Plc led the price losers with 5.1 per cent to close at N0.62, trailed by Diamond Bank Plc with 5.0 per cent. Vitafoam Nigeria Plc, Cement Company of Northern Nigeria Plc, FCMB Holdings Plc and Fidelity Bank Plc appreciated by 4.8 per cent, 4.8 per cent, 4.7 per cent and 4.4 per cent in that order.
In terms of sectoral performance three sector advanced while two declined. The NSE Consumer Goods Index emerged the worst performer, declining by 1.5 per cent on losses recorded by Nestle (-3.6 per cent), Nigerian Breweries (-0.6 per cent) and Guinness (-4.2 per cent). The NSE Oil & Gas Index shed 0.3 per cent as investors further sold–off in Forte Oil (-4.4 per cent) and Oando (-0.2 per cent).
However, the NSE Insurance Index gained 0.38 per cent on account of price appreciation in Continental Reinsurance (+3.8 per cent) and WAPIC Insurance Plc (+1.9 per cent). In the same vein, the NSE Industrial Goods Index added 0.04 per cent on account of renewed appetite for CCNN (+4.8 per cent) while the NSE Banking Index gained 0.02 per cent on the back of gains in Access Bank (+1.7 per cent) and UBA (+1.8 per cent) which offset losses in ETI (-4.1 per cent) and Zenith Bank (-0.4 per cent).
The bears consolidated their hold on the market on Wednesday, depressing the NSE ASI by 0.13 per cent to close at 26,245.34. The equities remained under sell pressure towards consumer goods and oil and gas counters, leading to a decline of N11.3 billion in market capitalisation to close at N9.03 trillion.
The decline was caused by losses suffered by stocks such as Forte Oil, Guinness Nigeria, Unilever Nigeria, Nestle Nigeria and Zenith Bank.
Guinness Nigeria Plc and Portland Paints and Products Nigeria Plc led the price losers with 5.0 per cent apiece to close at N63.65 and N1.71 respectively.
Diamond Bank Plc shed 4.8 per cent, just as Unilever Nigeria Plc and Transcorp Plc declined by 4.2 per cent and 3.3 per cent in that order. United Capital Plc lost 3.1 per cent as investors locked in profits recorded by the stock recently, closing at N3.39 per share.
Other losers were: Neimeth (2.7 per cent); WAPIC Insurance Plc (1.8 per cent); Forte Oil Plc (1.8 per cent), Cadbury Nigeria Plc (1.4 per cent).
The market declined further on Thursday as Dangote Cement exerted downward pressure, which led to the NSE ASI falling by 0.17 per cent to close 26,201.60. Other companies that contributed to the decline included Forte Oil, Nigerian Breweries, Nestle and Access Bank.
Although the market recovered on Friday, rising by 0.08 per cent, it was not enough to reverse the losses incurred in the previous days.
Market turnover
Meanwhile, investors traded of 1.340 billion shares worth N8.903 billion in 15,733 deals last week compared with 1.117 billion shares valued at N9.041 billion transacted the previous week in 16,482 deals.
However, the Financial Services Industry remained the most active, accounting for 1.107 billion shares valued at N3.918 billion traded in 9,429 deals. The Conglomerates Industry followed with 74.790 million shares worth N82.353 million in 584 deals, while the Consumer Goods Industry occupied the third position with a turnover of 47.603 million shares worth N1.466 billion in 2,463 deals.
Transaction in the top three equities namely – Fidelity Bank Plc, Continental Reinsurance Plc and Diamond Bank Plc easured by volume) accounted for 550.669 million shares worth N576.849 million in 1,558 deals, contributing 41.08 per cent and 6.48 per cent to the total equity turnover volume and value in that order.
Price gainers and losers
The price movement chart showed that 30 equities appreciated in price during the week, lower than the 31 equities of the previous week, while 27 equities depreciated in price, lower than 34 equities of the previous week.
Continental Reinsurance Plc and Mobil Oil Nigeria Plc, the price gainers with 10.9 per cent apiece. Unity Bank Plc trailed with a gain of 10.3 per cent Plc, just as NAHCO Plc went up 6.7 per cent.
Other top price gainers included: UACN Property Development Company Plc (6.2 per cent) and Dangote Sugar Refinery Plc (6.2 per cent each); Cement Company of Northern Nigeria Plc (6.0 per cent); FCMB Group Plc (5.5 per cent); Access Bank Plc (4.6 per cent) and Presco Plc (4.5 per cent).
Conversely, Forte Oil Plc led the price losers with 10.1 per cent trailed by Guinness Nigeria Plc with 8.2 per cent. Total Nigeria Plc and Diamond Bank Plc shed 6.3 per cent apiece. Nestle Nigeria Plc went down by 5.7 per cent, while and Portland Paints and Products Nigeria Plc and Berger Paints Nigeria Plc went shed 5.0 per cent each.
Other top losers were: NCR (Nigeria) Plc (4.9 per cent); N.E.M Insurance Plc (4.7 per cent) and NPF Microfinance Bank Plc (4.5 per cent).
