Investors Stake N25.9bn on Equities amidst Bearish Trading

WEEKLY REPORT 

By Goddy Egene

The   Nigerian equities market remained bearish last week as sustained profit taking in bellwethers dragged the Nigerian Stock Exchange (NSE) All-Share Index declining by 0.48 per cent to close at 41,022.31.  Similarly, market capitalisation fell by same margin to close lower at N14.860 trillion.

However, the value  and volume of shares traded rose by 25 per cent and 19 per cent respectively.  Specifically, investors staked N25.992 billion on 1.586 billion shares in 21,115 deals last week as against N20.835 billion invested in 18,695 deals the previous week.

Although  the NSE ASI shed weight,   the NSE Premium, NSE Banking, NSE Insurance, NSE Oil/Gas and NSE Lotus II indices appreciated by 0.35 per cent , 0.45 per cent, 0.83 per cent, 0.13 per cent and 0.34 per cent respectively.

Analysts at Cordros Capital Limited, despite selloffs in the equities market, “we maintain our positive outlook for Nigerian risky assets in the medium to long term, as market fundamentals remain strengthened.”

In the same vein, analysts at Meristem Securities Limited said the market would “rebound in near-term as attractive entry opportunities exist.”

 

Daily Performance

The market resumed on a negative note on Monday as the index fell  0.11 per cent to close at 41,172.82, while market capitalisation shed N16.6 billion to close at N14.91 trillion.  A decline in the share prices of Zenith Bank, Access Bank, Nigerian Breweries, GTBank and FBN Holdings Plc led to the negative performance on the first day of the week.

Trading volume   and value traded depreciated 21.9 per cent and 39.3 per cent to 221.4 million shares  and N2.6 billion respectively. The top traded stocks by volume were LASACO (24.3 million shares), GTBank (20.7 million) and Sovereign Trust Insurance Plc (16.6 million) while GTBank (N937.6 million), Nigerian Breweries Plc (N499.8 million) and Zenith Bank (N292.4 million) were the top traded by value.

Sector performance was largely bullish as three of five indices tracked closed in the positive territory. The NSE Industrial Goods Index led advancers, up 0.4 per cent, while   the  NSE Oil & Gas Index and  NSE Insurance Index  closed 0.2 per cent  and 0.1 per cent  higher respectively.

On the contrary, the NSE Banking  Index shed 0.3 per cent, just as   the NSE  Consumer Goods Index went down by 0.2 per cent.

The bearish trend extended for the second day with the index going down by 0.04 per cent to close at 41,155.80 points. Investors shed  N6.2 billion  as market capitalisation fell to N14.9 trillion. Profit taking in Dangote Cement Plc, Nigerian Breweries Plc and Forte Oil Plc were the major drag to performance.

However, activity level improved as volume and value traded surged 154.6 per cent and 124.7 per cent  to 563.6 million shares and N5.8 billion in that order. In volume terms, the top most active were: FCMB (297.5 million shares), GTBank Plc (59.2 million shares) and Zenith Bank  (32.5 million  shares). In value terms, GTBank GUARANTY (N2.7 billion), Zenith Bank (N893.5 million) and FCMB (N745.2 million) were the top traded stocks by value.

A further analysis showed that two    of five indices fell, led by the  NSE   Banking Index with 0.7 per cent. The NSE Industrial Goods Index inched up by 0.04 per cent.

On the other hand, the NSE Consumer Goods Index led  the losers chart shedding 0.3 per cent, while the Index  Insurance Index  and NSE  Oil & Gas Index  depreciated by fell 0.2 per cent and  0.01 per cent in that order.

The index depreciated further on Wednesday as the index shed  0.18 per cent to close at 41,080.12, just as market capitalisation closed lower at N14.88 trillion fowlloing decline in the share prices of Access Bank, UBA, GTBank, Nigerian Breweries and Transcorp. The three most actively traded stocks were GTBank (162.81 million shares), Fidelity Bank (29.51 million shares) and FBN Holdings (25.85 million shares).

Performance across sectors was mixed. The NSE  Oil & Gas Index closed flat while the NSE  Insurance  Index and NSE  Industrial Goods Index advanced 1.5 per cent  and 0.2 per cent in order. Conversely, the NSE Consumer Goods Index shed 0.5 per cent, just as  the NSE  Banking  Index closed 0.8 per cent respectively.

The bearish sentiments persisted on Thursday  with the index fell by 0.40 per cent to close at 40,914.94, while market capitalisation ended at N14.82 trillion. The depreciation recorded in the share prices of Seplat, Dangote Cement, GTBank, Flour Mills of Nigeria, and Transcorp were mainly responsible for the decline.

In the same vein, activity level closed lower too as volume and value traded fell 28.2 per cent  and 56.1 per cent to 244.9 million shares   and N4.1 billion  respectively. The top traded stocks by volume were Zenith Bank (79.3  million shares), Access Bank (19.9 million shares) and UBA (19.0 million shares) while Zenith Bank  (N2.2 billion), CAP Plc (N356. million) and Access Bank (N225.0 million) were the top traded stocks by value.

 

Market Turnover

A further analysis of the trading  showed that  the Financial Services Industry  led the activity chart with 1.360 billion shares valued at N20.378 billion traded in 11,936 deals, thus contributing 85.8 per cent and 78.4 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 52.727 million shares worth N2.125 billion in 3,301 deals. The third place was occupied by Oil and Gas Industry with a turnover of 50.092 million shares worth N783.716 million in 2,153 deals.

Trading in the top three equities namely – FCMB Plc, GTBank  Plc and Zenith Bank  Plc accounted for 745. 049 million shares worth N17.507 billion in 2,757 deals, contributing 46.69 per cent and 67.36 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 444,190 units of Exchange Traded Products (ETPs) valued at N2.514 million executed in 11 deals, compared with a total of 709,058 units valued at N3.845 million that was transacted  the previous week in 10 deals.

A total of 7,647 units of Federal Government valued at N8.047 million were traded last week in 30 deals, compared with a total of 80,152 units valued at N82.543 million transacted two weeks ago in 14 deals.

 

Price Gainers and Losers

Meanwhile, 49 equities depreciated in price, higher than 32 equities of the previous week, while 35 equities appreciated in price during the week, lower than 37 in the previous week.

Niger Insurance Plc led the price losers with 14.3 per cent, trailed by Japaul Oil & Maritime Services Plc with 13.0 per cent. UACN Property Development Company Plc shed 12.6 per cent, just as Unity Bank Plc went down by 10.8 per cent.

The other top price losers included: Diamond Bank Plc (9.9 per cent), Champion Breweries Plc (9.9 each); Courtville Business Solutions Plc,  Sovereign Trust Insurance Plc (9.0 per cent apiece); First Aluminium Nigeria Plc (8.1 per cent);and Neimeth International Pharmaceuticals Plc (7.6 p cent).

On the positive side, Cement Company of Northern Nigeria Plc led the price gainers with   29.7 per cent. Veritas Kapital Assurance Plc trailed with 27.2 per cent. Eterna Plc added 20.7 per cent, while Linkage Assurance Plc went up by 11.7 per cent.

Other top price gainers were: Okomu Oil Palm Plc(11.1 per cent); Skye Bank Plc (10.5 per cent); Redstar Express Plc (9.0 per cent); Caverton (8.7 per cent); Presco Plc and Nigerian Aviation Handling Company Plc (8.0 per cent apiece).