Stock Market Loses N61 Billion in One Week


Kunle Aderinokun

Activities on the floors of the Nigeria Stock Exchange (NSE) last week dropped as the NSE All Share Index (ASI) and market capitalisation declined by 0.65 per cent to close at 27,577.52 and N9.473 trillion respectively. For the NSE ASI, the stock market depreciated 179.15 having moved down from 27,756.67 it stood the previous week while for the market capitalisation, the bourse lost N61 billion dropping from N9.534 trillion it closed the previous week.

Similarly, all other Indices finished lower during the week, with the exception of the NSE Main Board Index, NSE Insurance Index, NSE Consumer Goods Index and the NSE Pension Index that appreciated by 0.01 per cent, 0.12 per cent, 0.50 per cent and 0.26 per cent respectively while the NSE ASeM Index closed flat.

In terms of volume and value of trading, a turnover of 1.183 billion shares worth N10.300 billion in 16,522 deals were traded this week by investors on the floor of the exchange in contrast to a total of 1.115 billion shares valued at N13.817 billion that exchanged hands last week in 16,083 deals.

A breakdown of trading activities revealed that the Financial Services Industry (measured by volume) led the activity chart with 1.015 billion shares valued at N7.136 billion traded in 11,012 deals. The figures represented 85.83per cent and 69.28per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed from a distance with 69.777 million shares worth N473.308 million in 564 deals.

The third place was occupied by the Services Industry with a turnover of 42.223 million shares worth N75.881 million in 202 deals. Trading in the top three equities namely – United Bank for Africa Plc, Guaranty Trust Bank Plc and FBN Holdings Plc (measured by volume) accounted for 444.004 million shares worth N4.958 billion in 4,153 deals, contributing 37.53per cent and 48.13per cent to the total equity turnover volume and value respectively.

For the Exchange Traded Products (ETPs), traded during the week were a total of 943 units of ETPs valued at N1.357 million executed in 28 deals, compared with a total of 29,242 units valued at N283,495.57 transacted last week in 42 deals.

Meanwhile, a total of 9,140 units of Federal Government Bonds valued at N9.198 million were traded in 6 deals compared to a total of 4,470 units of Federal Government Bonds valued at N4.313 million transacted last week in 8 deals.

Analysis of trading on Friday showed that at the close of trading, the NSE ASI inched up by 0.01 percentage points to close at 27,577.52, bringing the year-to-date return to -3.72per cent (-6.37per cent – over the last one year on an annualized basis).

Friday’s trading was driven by; Conoil (+10.19per cent, N23.79), 7UP (+4.61per cent, N146.45), PZ Cussons (+4.07per cent, N18.65), Stanbic IBTC (+3.38per cent, N15.00), UBA (+2.50per cent, N4.51), Guinness (+2.20per cent, N100.00), Oando (+1.41per cent, N5.00), Access Bank (+1.10per cent, N5.53), Unilever (+0.57per cent, N40.27), and Total (+0.45per cent, N241.08). Gainers numbering 22 dominated trading as against 17 that were losers.

For the week under review, 24 equities appreciated in price, lower than 28 equities of the previous week. Thirty-eight equities depreciated in price, higher than 31 equities of the previous week, while 118 equities remained unchanged lower than 121 equities recorded in the preceding week. May & Baker was the highest gainer for the week having risen 22.22 per cent in share price while Wema Bank was the highest loser with 12 per cent drop in share price.