NSE All-Share Index Sheds 1.3% as Market Extends Losses to Second Week

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Goddy Egene

The Nigerian equities market extended its losing streak to the second consecutive week as the Nigerian Stock Exchange All-Share Index (NSE ASI) declined by 1.27 per cent to close at 30,046.70. Similarly, the market capitalisation shed N167.7 billion to close at N13.2 trillion. Consequently, year-to-date decline worsened to 4.4 per cent.

Also, all other indices depreciated with the exception of the NSE Banking Index, NSE Insurance Index, NSE-AFR Bank Value Index and NSE Oil/Gas Index, which appreciated by 0.01 per cent, 0.86 per cent, 0.23 per cent and 0.28 per cent respectively while NSE ASeM Index closed flat. Sector performance was mixed as three out of the five tracked closed positive. The NSE Insurance Index led with a gain of 0.9 per cent while the NSE Oil & Gas Index went up by 0.3 per cent. Also, the NSE Banking Index rose by 0.01 per cent.

 On the contrary, the NSE Industrial Goods Index shed 2.6 per cent followed by   the NSE Consumer Goods Index that gained 1.8 per cent.

Commenting on the market performance, analysts at Cordros Capital Limited, said: We reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term.”

Other African markets were bearish as only two of six indices tracked closed in the green.  The two positive performers were Egypt’s EGX 30 that gained 2.8 per cent, while   Kenya’s NSE 20 Index closed the week with a growth of 0.2 per cent.

Conversely, Ghana’s GSE composite Index led the laggards with a decline of 4.1 per cent, trailed by Mauritius’ SEMDEX Index which shed 0.7 per cent. Morocco’s Casablanca MASI index closed in the red at 0.6 per cent.

In Asia and the Middle East, performance was also bearish as only two of the five indices appreciated. Saudi Arabia’s Tadawul ASI lost 4.8 per cent to lead the laggards due to the sharp fall in the price of oil during the week. Thailand’s SET index went down by1.1 per cent.  Similarly, Qatar’s DSM 220 Index closed in the red at 1.9 per cent. On the other hand, UAE’s ADX General and Turkey’s BIST 100 indices closed in the green with a gain of 0.8 per cent and 4.0 per cent respectively.

In the BRICS markets, performance was bullish with three of the five indices trended upwards. Despite the ongoing trade conflict, China’s Shanghai Composite index sustained its bullish momentum with a gain of 1.9 per cent.  Similarly, Russia’s RTS index gained 1.2 per cent following investors’ positive reaction to the reduction of the benchmark interest rate by 0.25 per cent to 7.5 percent. Also, Brazil’s Ibovespa index gained 0.7 per cent.

On the negative side, India’s BSE Sens index and South Africa’s FTSE/JSE All share went down by 0.4 per cent and 0.03 per cent in that order. However, performance in the developed markets was bullish as five of seven indices appreciated. In the United States, the S&P 500 and NASDAQ gained 0.4 per cent and 0.7 per cent respectively. In Hong Kong, the Hang Seng Index gained 0.6 per cent, despite the disruption in economic activities due to demonstrations against the ‘extradition bill’. In same vein, Japan’s Nikkei 225 and Germany’s XETRA DAX appreciated 1.1 per cent and 0.2 per cent in that order. UK’s FTSE All Share Index gained by 0.01 per cent in spite of uncertainty around the upcoming election and deadline for a Brexit deal.  On the negative side, France’s CAC 40 index declined 0.2 per cent.

Market turnover

Meanwhile, it was a four-day trading week as the Federal Government of Nigeria declared Wednesday 12th June 2019 as Public Holiday to mark the democracy day celebrations. Investors traded 868.739 million shares worth N15.792 billion in 12,201 deals contrast to a total of 768.983 million shares valued at N12.546 billion that exchanged hands the previous week in 11,291 deals. 

 The Financial Services Industry led the activity chart with 674.654 million shares valued at N9.295 billion traded in 6,651 deals, thus contributing 77.6 per cent and 58.8 per cent to the total equity turnover volume and value respectively. The ICT Industry followed with 69.205 million shares worth N3.352 billion in 769 deals. The third place was Consumer Goods Industry with a turnover of 51.550 million shares worth N2.342 million in 1,915 deals.    Trading in the top three equities namely, Guaranty Trust Bank, Zenith Bank Plc, and Wapic Insurance Plc accounted for 359.451 million shares worth N7.774 billion in 2,252 deals, contributing 41.3 per cent and 49.2 per cent to the total equity turnover volume and value respectively.

Also, total of 2,163 units valued at N354,065.06 were traded last week in six deals, while there was no trade recorded two weeks ago.

A total of 235 units of Federal Government Bonds valued at N229,216.74 were traded last week in 14 deals compared with a total of 23,941units valued at N24,584 million transacted two weeks in 26 deals.

Price gainers and losers

An analysis of the price movement chart showed that 19 equities appreciated in price higher than 15 in the previous week, while 31 equities depreciated lower than 44 equities of the previous week.

Forte Oil Plc led the price gainers with 14.1 per cent, trailed by Glaxosmithkline Consumer Nigeria Plc with 11.1 per cent. Consolidated Hallmark Insurance Plc chalked up 10 per cent. The insurance company, which recently paid a dividend of N162.6 million assured shareholders that it would maintain policy of regular dividend payment. 

 “We shall remain committed to our promise of regular dividend payment, God willing, having paid dividends seven financial years out of 11 of our operations in the past. This year, we are proposing a total dividend payment of two kobo per share subject to your approval at this meeting. This will translate to a total dividend pay-out of N162.6 million from our 2018 operations,” the Chairman of CHI Plc, Mr. Obinna Okezie told the shareholders.

Royal Exchange Plc garnered  9.1 per cent, while United Capital Plc appreciated by 5.9 per cent. May & Baker Nigeria Plc  and WAPIC Insurance Plc rose 5.3 per cent and 5.1 per cent respectively.

Mutual Benefits Assurance Plc and NEM Insurance Plc gained 5.0 per cent and 2.4  per cent in that order.

Conversely, Nigerian Aviation Handling Company Plc led the price losers with 11.8 per cent, Cement Company of Northern Nigeria Plc shed 10 per cent.

C & I Leasing Plc went down by 9.8 per cent, while NPF Microfinance Plc and Thomas Wyatt Plc lost 9.7 per cent and 8.3 per cent respectively. Dangote Sugar Refinery Plc and International Breweries Plc depreciated by 7.8 per cent and 7.2 per cent in that order.

LASACO Assurance Plc went down by 6.2 per cent and Presco Plc shed 5.1 per cent.