NSE All-Share Index Sheds 0.29% Despite 33% Growth Trading Volume 


Goddy Egene

The Nigerian stock failed to sustain the positive performance recorded the previous week as the Nigerian Stock Exchange (NSE) All-Share Index fell 0.29 per cent to close at 27,698.69, while market capitalisation ended lower at N13.484 trillion.

The depreciation in the NSE ASI came despite an increase of 33 per cent in value of trading, which rose to N18.75 billion   from N14.082 billion the previous week. 

The market had opened last Monday with a bearish performance, falling by 0.7 per cent. The negative trend was sustained on Tuesday with a depreciation of 0.6 per cent. However, the bulls set in on Wednesday, lifting the market by 1.0 per cent, while the bears returned on Thursday with a decline of 0.1 per cent.

Although the market recovered on Friday with a growth of 0.2 per cent, the growth was not enough to off-set the previous losses. Hence, it ended the week with decline of 0.29 per cent.

Looking ahead, analysts at Cordros Capital said they expected the market to remain pressured given global risk-off sentiments and weak domestic participation. 

“Nonetheless, we note that valuations remain attractive while price deterioration has resulted in expected dividend yields on some stocks rising significantly to levels on par with yields on Treasury bills. Hence, we advise that long-term investors consider appropriately timed investments,” they said.

Across Africa, bearish sentiments prevailed  as only  Kenya’s market put up a positive performance.  Kenya’s NSE 20 Index  advanced  0.5 per cent. Egypt’s EGX 30 Index lost the most, down 2.4 per cent, followed by  Morocco’s Casablanca MASI  that went down by 1.1 per cent. The Ghana’s GSE Composite and Mauritius’ SEMDEX indices also depreciated 0.04 per cent and 0.03 per cent respectively. 

In the Asian and Middle East market, three of the five  markets tracked  closed in the  negative territory. The attack on Saudi Arabia’s oil infrastructure recently appeared to have affected the markets as  Saudi Arabia’s Tadawul ASI, UAE’s ADX General and Qatar’s DSM 220 indices lost 1.2 per cent, 0.6 per cent and 0.5 per cent  respectively. On the positive side, Turkey’s BIST 100 and Thailand’s SET indices appreciated by 2.9 per cent and 1.6 per cent in that order.

However, the BRICS market recorded a relatively good performance as three of five markets grew.  India’s BSE Sens index gained 1.7 per cent as the government cut corporate taxes to revive waning growth. Brazil’s Ibovespa and Russia’s RTS also appreciated 1.0 per cent and 0.1 per cent respectively.  Conversely, South Africa’s FTSE/JSE shed 1.2 per cent, while China’s Shanghai Composite shed 0.8 per cent.

Performance in the developed markets was also bullish last week as four of the seven markets tracked   appreciated. The United States (US) S&P 500 and NASDAQ indices gained 0.2 per cent apiece due to   the Fed’s rate cut. 

In Europe, France’s CAC 40 index emerged the lone gainer, rising   0.6 per cent while Germany’s XETRA DAX and UK’s FTSE All Share indices pared garnered 0.02 per cent and 0.1 per cent respectively. Also, Hong Kong’s Hang Seng index shed   3.4 per cent just as Japan’s Nikkei 225 rose 0.4 per cent.

Market turnover

In terms of turnover, investors traded 1.272 billion shares worth N18.750 billion in 19,482 deals compared with 1.147 billion shares valued at N14.082 billion that exchanged hands in 17,980 deals two weeks ago.  

 The Financial Services industry led the activity chart with 945.947 million shares valued at N9.743 billion traded in 11,046 deals, thus contributing 74.3 per cent and 51.96 per cent to the total equity turnover volume and value respectively. The Consumer Goods industry followed with 82.934 million shares worth N5.556 billion in 2,862 deals, while the third place was occupied by the Conglomerates Industry with a turnover of 80.821 million shares worth N267.101 million in 1,163 deals.    Trading in the top three equities namely, FBN Holdings Plc, Guaranty Trust Bank Plc and Access Bank Plc, accounted for 482.334 million shares worth N6.561 billion in 4,724 deals, contributing 37.9 per cent and 34.9 per cent to the total equity turnover volume and value respectively. 

Investors in Exchange Traded Products transacted 96 units valued at N215,654.78 last week in six deals compared with a total of 6,540 units valued at N23,650.70 transacted the preceding week in five deals.

Also, the bonds market recorded 17,761 units of Federal Government Bonds valued at N20.361 million exchanged in five deals compared with a total of 274 units valued at N280,932.14 transacted the previous week in seven deals

Top price gainers and losers

Meanwhile, 38 equities appreciated in price during the week, lower than 39 equities in the previous week, while 29 depreciated, higher than 19 in the previous week.

Cornerstone Insurance Plc led the price gainers with 30 per cent, trailed by Livestock Feeds Plc with 28.2 per cent, while Stanbic IBTC Holdings Plc went up by 22.4 per cent.

The Chief Executive, Stanbic IBTC Holdings Plc, Mr. Yinka Sanni  ecently assured   stakeholders  that  the group  remained  strong, stable, sustainable in its operations and would continue to deliver long value.

Stanbic IBTC Holdings Plc  posted a profit of N36 billion for the half-year which ended June 30, 2019 and rewarded shareholders with an interim dividend of N10.2 billion at 100 kobo per share.

Speaking against the background of that performance and future plans Sanni said:“We remain committed to operating to the highest level of corporate governance standards while delivering sustainable long-term value to clients and other stakeholders through world-class innovative operations and our customer-centric approach.” 

 He said that  the group’s achievements were  an indication that its strategy was  delivering on set goals and objectives, assuring  stakeholders that the organisation would  continue to invest in its people, processes, and its communities to ensure business sustainability.

According to him, in 30 years, Stanbic IBTC has built a culture of excellence in providing its clients with innovative financial products and services as well as contributing to the attainment of the developmental aspirations of the country. 

“Stanbic IBTC has grown steadily from its early days as a merchant bank to a leading end-to-end financial services provider in the countrytoday, with a balance sheet size close to N2 trillion and a market capitalisation valued at approximately N500 billion in December 2018,” Sanni said. 

He explained that the bank, in a clear demonstration of its confidence in Nigeria, facilitated a staggering $589.84 million capital inflow into the country during the second quarter of this year. 

Meanwhile, NEM Insurance Plc chalked up 20.7 per cent, while UAC of Nigeria Plc went up 19.7 per cent. PZ Cussons Nigeria Plc gained 19.4 per cent, while Dangote Sugar Refinery Plc and Okomu Oil Palm Plc garnered 15.1 per cent and 13.5 per cent respectively. Jaiz  Bank Plc and Linkage Assurance Plc appreciated by 13.1 per cent and 12 per cent respectively.

Conversely, Airtel Africa Plc led the price losers’ table with 19 per cent, followed by Champion Breweries Plc with 11.5 per cent. Portland Paints & Products Nigeria Plc shed 9.7 per cent, just as NCR Nigeria Plc went down by 9.0 per cent. Associated Bus Company Plc, Chams Plc and Sterling  Bank Plc depreciated by 8.3 per cent,   7.6 per cent and 7.2 per cent in that order. 

RT Briscoe Nigeria Plc went down by 6.9 per cent, while The Initiates Plc and LASACO Assurance Plc lost 6.6 per cent apiece among others.