All-Share Index Year-to-date Decline Hits 19.8%

By Goddy Egene

It was another week of negative performance at the stock market as the Nigerian Stock Exchange (NSE) All-Share Index went down further by 0.63 per cent to close at 30,672.79, while market capitalisation depreciated by 0.58 per cent to close at N11.204 trillion.

Year-to-date the index has declined by 19.8 per cent. The negative performance extended due to sell-offs in bellwethers as investors go for cash to take care of end of year festivities.

A look at the market performance showed that fluctuation of the previous week continued last week. For instance, the market opened with a decline. However, it rebounded on Tuesday with 0.34 per cent growth. By Wednesday, the market returned to the control of the bears which was extended to   Thursday.  Although Friday’s trading session was positive, the losses of the previous days overwhelmed that growth. Consequently, the market shed 0.63 per cent for the week.

A further breakdown of the performance indicated that three of the five tracked ended higher.  The NSE Industrial Goods Index led gainers, following price appreciation in Dangote Cement Plc. The NSE Banking Index and NSE Insurance Index chalked up 0.2 per cent apiece. Conversely, the NSE Consumer Goods   Index declined the most, shedding 2.8 per cent followed by the NSE Oil & Gas Index that shed 0.8 per cent.


Other Markets

Looking at other markets across the globe, analyst at Afrinvest stated they ended the week gloomy as growth outlook for major economies were anything but exciting.

The markets opened the week optimistic on advancement in trade talks between the United States and China, however the trade-fuelled market rally was quelled by global growth concerns.

 Chinese data for November released this week indicates that economic activity is slowing down as retail sales grew by 8.1 per cent (the lowest in 15 years ) and Industrial production growth was 5.4 per cent –  the lowest since early 2016 ) both significantly missing estimates. In ripple effect, Asian markets temporarily reversed trend after days of broad consecutive gains.

In Europe, the European Central Bank   officially ended its Quantitative Easing programme, thus reducing its monetary support for the European economy. The forward guidance on outlook by ECB President, Mario Draghi, suggested a downside risk to economic growth in the EU.

However, performance in major markets by the end of the week was mostly in the green. In the United States markets, the S&P 500 and NASDAQ closed up 0.7 per cent and 1.5 per cent respectively; while the United Kingdom FTSE edged higher by 0.3 per cent. In Europe, France’s CAC 40 (0.8 per cent) and Germany’s XETRA DAX (0.1 per cent) were up for the week.  Hong Kong’s Hang Seng inched up 0.1 per cent while Japan’s Nikkei 225 was lower by 1.4 per cent.

Afrinvest in a report also noted that markets in the BRICS regions were mixed but with a bearish tilt as three out of five indices were negative.  Brazil’s Ibovespa was 0.3 per cent down alongside China’s Shanghai Composite that went down by 0.5 per cent.

Russia recorded the highest decline of   3.4 per cent. On the positive end, India’s BSE Sens and South Africa’s JSE All Share were up 0.8 per cent and 0.5 per cent respectively.

In Asian, four of the five indices tracked were positive except for Saudi Arabia’s Tadawul that fell 0.8 per cent. Thailand’s SET Index recorded the strongest performance with a 2.4 per cent gain. Turkey’s BIST 100, Qatar’s DSM and UAE’s ADX appreciated by   1.6 per cent, 1.4 per cent and 0.3 per cent in that order.

Similarly, in African markets, four of six indices ended in negative territory.

But Egypt’s EGX 30 had the best performance of the pack posting a gain of 4.9 per cent, trailed by Morocco’s Casablanca that shed 0.3 per cent. Conversely, Kenya’s NSE (-2.0 per cent) was the steepest fall, while   Ghana and Mauritius went down by 0.7 per cent and 0.1 per cent respectively.

 Market Turnover

Meanwhile, investors traded 1.169 billion shares worth N14.762 billion in 14,554 deals, up from 1.107 billion shares valued at N11.192 billion that exchanged hands the previous week in 14,430 deals.

But the Financial Services Industry remained   the most   active with 983.374 million shares valued at N9.358 billion traded in 8,484 deals thus contributing 84.15 per cent and 63.39 per cent to the total equity turnover volume and value respectively.

The Healthcare Industry followed with 44.802 million shares worth N183.753 million in 253 deals, while the third place was Consumer Goods Industry with a turnover of 42.758 million shares worth N3.553 billion in 2,227 deals.

Trading in the top three equities namely: Zenith Bank Plc, FBN Holdings Plc, and United Bank for Africa Plc and accounted for 438.938 million shares worth N 5.691 billion in 2,962 deals, contributing 37.56 per cent and 38.55 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 316 units of Exchange Traded Products (ETPs) valued at N849,000 executed in five deals compared with a total of 84,714 units valued at N1.219 million that was transacted last week in 10 deals.

A total of 10,934 units of Federal Government Bonds valued at N10.746 million were traded last week   in 31 deals compared with a total of 2,908 units valued at N2.516 million transacted the previous week in 11 deals.

Price Gainers and Losers

A total of 34 stocks appreciated   in value higher than the 30 the previous week, while 37 equities depreciated in price, lower than 38 of the previous week. Forte Oil Plc led the price gainers with 33.8 per cent, trailed by John Holt Plc, Veritas Kapital Assurance with 20 per cent, 19 per cent respectively. CAP Plc garnered 18.2 per cent, just as Union Bank of Nigeria Plc chalked up 14 per cent. Other to price gainers included: First Aluminium Nigeria Plc, Berger Paints Nigeria Plc, Japaul   Oil & Maritime Plc that appreciated by 10 per cent apiece.

Conversely, Double 11 Plc and Conoil Plc shed 10 per cent each to lead the price losers’ table. Cutix Plc and Livestock Feeds Plc went downy by 9.6 per cent each. Chams Plc, Cornerstone Insurance Plc and Daar Communications Plc shed 9.0 per cent apiece). Other top price losers were: Mutual Benefits Assurance Plc (8.7 per cent); C & I Leasing Plc (8.2 per cent) and ABC Transport Plc (7.4 per cent).

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