Stock Market Loses N394 Billion in One Week

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• Foreign investors slow down activities after profit-taking

• 48 equities depreciate, while 19 equities appreciate

Kunle Aderinokun

Activities on the trading floors of the Nigerian Stock Exchange dropped significantly within the last one week, plunging by N394 billion in market capitalisation and 1,141.84 last Thursday in NSE All Share Index (ASI) to N12.237 trillion and 35,504.62 respectively. This represented a decline of 3.12 per cent from the previous Friday’s position of N12.631 trillion and 36,646.46 respectively.

But when measured on a monthly basis, the market experienced aggregate decline of 3.31 per cent both in market capitalisation and ASI. According to the statistics from NSE, the market opened the month on Tuesday, August 1 with a market capitalisation of N12.656 trillion and ASI of 36,720.62, and closed with N12.237 trillion and 35,504.62 respectively on Friday, August 31. This represented a loss of N419 billion and 1,216 in market capitalisation and ASI respectively.

A capital market operator, who craved anonymity volunteered reasons why the market went down last week. According to the source, there was basically nothing exciting during the week that could have driven the market up as foreign investors slowed down their activities after profit-taking to lock in their gains.

The foregoing, the source added, was coupled with the fact that besides the rush to satisfy the needs for the Eid el Kabir festivity, local investors were offloading their shares for liquidity to fund tuition fees as schools would be resuming next week.

The market had after a week of trading into the month, recorded a three-year high hitting the N13 trillion mark on renewed investor optimism. Specifically, by the close of trading on Tuesday, August 8, the market hit a three-year high as market capitalisation stood at N13.1 trillion for the first time since October 2014, while ASI closed at 37,999.56.

This was after the gains recorded on July 17, when activities of the bulls, which resurged after a bout of losses, pushed the market capitalisation and ASI to close 2.47 per cent higher than the previous week.

However, during the last week that ended, which was only four days of trading due to the Friday and Monday public holidays declared by the Federal Government to commemorate the Eid -el- Kabir Sallah celebration, all other Indices finished lower with the exception of the NSE Insurance and NSE Oil/Gas Indices that appreciated by 1.90 per cent and 0.29 per cent respectively while the NSE ASeM Index closed flat.

A total turnover of 998.973 million shares worth N11.455 billion in 13,626 deals were traded by investors on the floor of the Exchange in the week under review in contrast to a total of 1.538 billion shares valued at N24.218 billion that exchanged hands the previous week in 19,187 deals.

The Financial Services Industry (measured by volume) led the activity chart with 838.247 million shares valued at N5.134 billion traded in 7,884 deals; thus contributing 83.91 per cent and 44.82 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 45.589 million shares worth N3.225 billion in 2,759 deals. The third place was occupied by Conglomerates Industry with a turnover of 35.563 million shares worth N60.673 million in 627 deals. Trading in the top three Equities namely – Custodian and Allied Plc, Sovereign Trust Insurance Plc and Fidelity Bank Plc. (measured by volume) accounted for 383.065 million shares worth N829.743 million in 650 deals, contributing 38.34 per cent and 7.24 per cent to the total equity turnover volume and value respectively.

In all 19 equities appreciated in price during the week, lower than 32 of the previous week. Forty-eight equities depreciated in price, higher than forty equities of the previous week, while 104 equities remained unchanged higher than 99 equities recorded in the preceding week.

Heading the top price gainers’ table was Cutix, which garnered 24.38 per cent gain (49 kobo) to close at N2.50 per share from N2.01 per share that it opened the trading. It was followed by Continental Reinsurance, which gained 13.95 per cent in price (18 kobo) to close at N1.47. Other gainers were: Total Nigeria with 13.01 per cent (N28.20); Fidson Healthcare with 6.03 per cent (19 kobo); Custodian and Allied, 5.26 per cent (18 kobo); May & Baker Nigeria, 5.24 per cent (15kobo); PZ Cussons Nigeria, 5 per cent (N1.30); Newrest ASL Nigeria, 4.99 per cent (27kobo); Niemeth International, 4.82 per cent (4kobo) and Vitafoam Nigeria, 4.49 per cent (12 kobo).

On the other hand, leading the losers was 11 Plc with 14.25 per cent loss, having shed N27.44 to close at N165.11 from N192.55, which it opened the week. First Aluminium trailed behind with 12.70 per cent, dropping 8 kobo from 63 kobo to 55kobo. Others are C & I Leasing, 9.91 per cent (11kobo); Julius Berger Nigeria, 9.72 per cent (N3.50); Morison Industries, 8.80 per cent (8 kobo); Guinness Nigeria, 7.36 per cent (6kobo); FCMB Group, 6.96 per cent (8 kobo); Linkage Assurance, 6.94 per cent(5kobo); United Bank for Africa, 6.19 per cent (60kobo); and Nigeria Breweries, 5.25 per cent (N9.97).

Similarly, traded during the week were a total of 86,063 units of Exchange Traded Products (ETPs) valued at N838,754.79 executed in 8 deals compared with a total of 390 units valued at N6,511.60 transacted last week in 5 deals.

In the same vein, a total of 12,244 units of Federal Government Bonds valued at N12.374 million were traded this week in 11 deals, compared with a total of 3,657 units valued at N2.866 million transacted last week in nine deals.