MARKET REPORT
By Goddy Egene
The Nigerian equities market began the month of October on a negative note after shedding 5.9 per cent in September on the back of continuing sell-offs across major tickers last week. Specifically, the Nigerian Stock Exchange (NSE) All-Share Index (NSE ASI) declined 1.17 per cent to close at 32,383.15, while market capitalisation went down by same margin to close lower at N11.822 trillion. All sessions of the week closed negatively with the bears dominated all major sectoral Indicators.
The NSE Insurance Index led with a decline of 1.01 per cent, followed by the NSE Banking Index with a fall of 0.65 per cent. The NSE Industrial Goods Index went down by 0.35 per cent, while the NSE Consumer Goods Index shed 0.32 per cent. However, the NSE Oil & Gas Index gained 1.13 per cent.
Apart from the index that declined, the volume and value of trading also dipped last week as investors traded 639.317 million shares worth N7.842 billion in 10,477, down from 924.546 million shares valued at N14.194 billion that exchanged in 14,119 deals the previous week.
The Financial Services Industry led the activity chart with 517.865 million shares valued at N4.654 billion traded in 5,977 deals, thus contributing 81 per cent and 59.3 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 54.733 million shares worth N2.526 billion in 1,703 deals. The third place was Conglomerates Industry with a turnover of 14.752 million shares worth N25.560 million in 452 deals.
Trading in the top three equities namely – First City Monument Bank, Fidelity Bank Plc and Guaranty Trust Bank Plc, accounted for 267.466 million shares worth N2.592 billion in 1,733 deals, contributing 42 per cent and 33.05 per cent to the total equity turnover volume and value respectively.
A total of 27 equities appreciated in price last week, lower than 28 in the previous week, while 32 equities depreciated in price, lower than 41 equities of the previous week.
Cutix Plc led the price losers with 15.3 per cent, trailed by Forte Oil Plc with 10.2 per cent, while Japaul Oil & Maritime Services Plc chalked up 9.0 per cent.
Conversely, Niger Insurance Plc led the price losers with 18.9 per cent, just as Law Union & Rock Insurance Plc shed 15.3 per cent.
Commenting on the market outlook, analysts at Cordros Capital Limited said:
“Our outlook for equities in the near-to-medium term is negative, and we guide investors to
trade cautiously, amidst absence of a near term positive catalyst and political jitters ahead
of the upcoming 2019 elections. However, macroeconomic fundamentals remain stable and
supportive of recovery in the long term.”
