The Nigerian stock market recorded a decline in the first week of the second quarter(Q2) as investorsâ€™ negative sentiments persisted. Having closed the firstÂ quarter(Q1) with a growth ofÂ Â 8.5 per cent, the market opened Q2 with decline last week with the Nigerian Stock Exchange (NSE) All-Share Index 1.6 per cent. The negative performance stemmed fromÂ Â Â sell offs in some bellwether stocks.
Specifically, the NSE ASI closed lower at 40,841.14, while market capitalisation shed N239.6 billion to be at N14.8 trillion last week.Â Â Performance across sectors, was equally bearish led by the NSEÂ Oil & Gas IndexÂ Â 2.8 per cent, trailed byÂ Â the NSEÂ Â Industrial GoodsÂ Index went down by 2.1 per cent.Â Â The NSEÂ Banking Index lost 1.3 per cent. Similarly, sell pressures in drove theÂ Â NSE Consumer Goods IndexÂ Â andÂ Â NSE Insurance IndexÂ Â down 1.1 per centÂ Â and 0.1 per cent respectively.
Daily PerformanceÂ Â Â Â Â Â Â Â Â
The equity market opened on Tuesday, which wasÂ the first trading of theÂ Â Q2 onÂ Â a negative noteÂ Â as the NSE ASIÂ Â Â depreciated by 1.56 per centÂ Â to close at 40,855.64, whileÂ Â Â market capitalisation shed N234.4 billion to close lower at N14.76 trillion.Â Â The depreciation recorded in the share prices of GTBank, Dangote Cement, FBN Holdings, Nigerian Breweries, and Lafarge Africa were mainly responsible for the loss recorded in the index.
The performance on Tuesday dragged the year-to-date (YTD) growth toÂ Â droppedÂ Â 6.8 per cent.Â Â But the level ofÂ Â activity level improved as volume and value traded rose 34.8 per cent and 68.8 per cent to 364.8 million shares and N6.3 billion respectively. Zenith Bank Plc (88.2 million shares), TranscorpÂ Â (60.0 million shares) and Sterling Bank PlcÂ Â (40.5 million shares ) led the top traded stocks by volume chart while Zenith BankÂ Â (N2.6 billion), Nigerian Breweries Plc IGERIAN BREWERIES (N1.2 billion) and Nestle NigeriaÂ Â (N0.6 billion) were the top traded stocks by value.
In terms of sectoralÂ Â performance,Â Â the five indices declined, led byÂ the NSEÂ Â Industrial Goods Index with 3.4 per cent. TheÂ Â NSE Consumer GoodsÂ Â Index followed with 0.6 per cent decline, while the NSE Oil & GasÂ Â Index shed 0.5 per cent. Similarly, the NSE Banking Index slid 0.4 per cent, just as the NSE Insurance IndexÂ closed 0.1 per cent lower.
The market maintained the downward trend, shedding 0.26 per cent to be at 40,749.86, pulling the YTD growth to 6.6 per cent.Â Â The bearish performance can be attributed to sell pressures in Zenith Bank , Dangote FlourÂ Â Mills Plc,Â Â ETI, Fllour Mills of Nigeria Plc, FBN Holdings Plc, Transcorp Plc and UAC of Nigeria Plc.
UACN, which is a leading conglomerate, recorded a decline of 83 per cent for the year ended December 31, 2017. But the directors recommended a dividend of 65 kobo per share despite the profit fall.
The audited results of UACN showed that revenueÂ Â Â of N89.178 billion, downÂ Â Â by eight per cent from N82.572 billion. Operating profit fell by 19 per cent to N7.031 billion, from N8.639 billion. However, net finance cost soared by 218 per cent from N1.361 billion to N4.324 billion in 2017.
The surge in the cost of finance was fueled by high interest charges paid on bank borrowings. UACN paid N5.984 billion on charges on loans and overdraft from banks.Â Â Profit before tax stood at N3.246 billion, showing a decline ofÂ Â 61 per cent from N8.368 billion, while profit after taxÂ Â fell by 83 per cent to N962 million in 2017 compared with N5.666 billion in 2016.
Â However, theÂ Â Â equities market rebounded on ThursdayÂ as theÂ NSEÂ Â ASIÂ Â Â appreciated by 0.31 per cent to closeÂ Â at 40,875.69. Similarly, market capitalisation added N45.5 billion to close at N14.77 trillion.
The appreciation recorded in the share prices of ETI, Dangote Cement, Zenith Bank, UBA, and Access Bank, were mainly responsible for the positive performance. Also, activity level improved as volume and value traded increased by 23.5 per cent and 13.3 per cent respectively to 495.6 million sharesÂ and N7.7 billion.
Prestige Assurance Plc led the price gainers with 9.3 per cent, followed by LASACO Assurance Plc. Transcorp Plc, May & Baker Nigeria Plc and Eterna Plc appreciated by 4.8 per cent, 4.6 per cent and 4.6 per cent respectively.
Conversely, Glaxosmithkline Consumer Nigeria Plc led the price losers with 9.6 per cent, trailed by Jaiz Bank Plc with 8.1 per cent. Japual Oil, International Breweries Plc and NPF Microfinance Bank Plc shed 7.5 per cent, 4.9 per cent and 4.7 per cent in that order.
In terms sectoral Sector performance four closed positively led byÂ the NSEÂ Â Industrial Goods Index withÂ Â 0.6 per cent. The NSEÂ Insurance Index trailed, closing 0.4 per centÂ Â higher, whileÂ Â theÂ Â NSE Banking Index went up byÂ Â 0.3 per cent. The NSEÂ Oil & Gas IndexÂ appreciated byÂ Â 0.1 per cent.
The market could not sustain the positive performance of the previous day on FridayÂ Â as the bears returned. This pushed the market to close the week on a negative performance.
Just like the previous week when the market opened for four days, trading last week as also for four days due to public holiday to celebrate Easter Monday.Â Â A total ofÂ of 1.765 billion shares worth N26.562 billion were traded inÂ Â 20,265 deals last week, compared with 2.328 billion shares valued at N28.827 billion in 25,530 deals the previous week.
The Financial Services Industry led the activity chart with 1.468 billion shares
valued at N18.707 billion traded in 12,850 deals,Â Â thus contributing 83.18 per centÂ Â and 70.43 per centÂ Â to the total equity turnover volume and value respectively. The Conglomerates Industry trailed with 127.882 million shares worth N623.871 million in 971 deals. The third place was occupied by Consumer Goods with a turnover of 69.868 million shares worth N6.189 billion in 2,930deals.
Trading in the top three equities namely â€“ Zenith I Bank Plc, Access Bank Plc and
United Bank for Africa Plc accounted for 543.758 million shares worth N9.739billion in 3,533 deals, contributing 30.81 per centÂ Â and 36.66 per centÂ Â to the total equity turnover volume and value respectively.
Price Gainers and Losers
The bears were in total control as 53 equities depreciated in price, higher than 40 equities of the previous week, while on 19Â Â equities appreciated in price during the week, lower than 40 of the previous week.Â Â Japaul Oil & Maritime Services Plc led the price losers with 23.7 per cent, trailed by Unity Bank PlcÂ Â with 17.2 per cent. Jaiz Bank Plc shed 16.1 per cent, just as Glaxosmithkline Consumer Nigeria Plc and Wema Bank Plc with 14.7 per cent and 14.1Â Â per cent respectively.
Other top price losers included: Dangote Flour Mills Plc (13.4 per cent); Sovereign Trust Insurance Plc (13.0 per cent); Unity Kapital Assurance Plc (11.5 per cent); Sterling Bank Plc (9.7 per cent) and International Breweries Plc (9.6 per cent).
On the positive side, LASACO Assurance Plc led the price gainers with 21.2 per cent, trailed by May & Baker Nigeria Plc with a gain ofÂ 14.3 per cent. Law Union and Rock Insurance Plc chalked up 12.3 per cent, just as UNIC Diversified Holdings Plc garnered 11.1 per cent.
Other top price gainers are: AIICO Insurance Plc (9.6 per cent); African Alliance Insurance Company Plc (9.1 per cent); Unilever Nigeria Plc (8.7 per cent); Access Bank Plc (8.6 per cent); CavertonÂ and Prestige Assurance Plc(4.4 per cent apiece).