Equities Investors Stake N32bn on Shares Despite 1.8% Decline in Index

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Goddy Egene

Investors staked N31.959 billion on 1.409 billion shares in 13,616 deals last week at the stock market, as low valuations attracted some bargain hunters. The performance, in value terms showed a jump of 244 per cent compared with N9.189 billion invested in 660.645 million shares in 12,032 deals.

However, the Nigerian Stock Nigeria (NSE) All-Share Index (ASI) extended its decline, going down by 1.68 per cent to close at 26,533.78, while market capitalisation   shed N220.8 billion to be at N12.917 trillion. The year-to-date decline has, thus, worsened to 15.6 per cent, offering investors entry opportunity to buy most of the stocks at discounted rates.

The market was bearish for the five days, dipping by 0.5 per cent and 0.2 per cent on Monday and Tuesday respectively. It went down by 0.8 per cent, 0.1 per cent and 0.2 per cent on Wednesday, Thursday and Friday in that order.

In terms of sectoral performance, the NSE Consumer Goods Index recorded the highest decline of four per cent due to losses suffered by Guinness Nigeria Plc, PZ Cussons Nigeria Plc among others.

The NSE Oil & Gas Index depreciated by 3.2 per cent, while the NSE Industrial Goods Index fell by 1.8 per cent. The NSE Insurance Index shed 1.6 per cent. But on the positive side, the NSE Banking Index appreciated by 0.1 per cent.

Just as the Nigerian market, Morocco’s market closed in the red. Specifically, Morocco’s Casablanca MASI lost 0.9 per cent, followed by Egypt’s EGX 30 index that dipped by 0.5 per cent. However, the Mauritius’ SEMDEX and Ghana’s GSE Composite rose by 0.70 per cent apiece. Kenya’s NSE 20 Index gained 0.40 per cent. 

In the Asia and Middle East region, the Turkey’s BIST 100 Index gained the most, advancing 4.3 per cent, while  Qatar’s DSM 20 and Saudi-Arabia’s Tadawul ASI indices garnered  0.8 per cent and 2.9 per cent respectively. On the negative side, Thailand’s SET Index declined 1.2 per cent, just as UAE’s ADX General Index  shed  0.9 per cent.

In the BRICS markets, South Africa’s FTSE/JSE All Share Index  led the pack with a gain of 2.9 per cent, trailed by China’s Shangai Composite Index, which added  2.4 per cen. Russia’s RTS  Index and India’s BSE Sens Index appreciated by 1.9 per cent and 1.2 per cent respectively, just as  Brazil’s Ibovespa Index gained  0.8 per cent.

Performance in the developed market was bullish. In the United States (US) for instance,  the US’ S&P 500 and NASDAQ indices rose 0.7 per cent and 1.2 per cent  respectively upon resumption of trade talks with China. In Europe, Germany’s XETRA DAX Index led the gainers with  3.4 per cent, France’s CAC 40  Index and UK’s FTSE All Share  Index appreciated by  2.7 per cent and 1.0 per cent respectively. Similarly, Hong Kong’s Hang Seng Index appreciated 1.9 per cent in spite of resumption of political protests while Japan’s Nikkei 225 gained 1.8 per cent.

Market turnover

Meanwhile, the Financial Services industry remained the most active, leading with 1.081 billion shares valued at N8.739 billion traded in 7,720 deals, thus contributing 76.7 per cent and 27.3 per cent to the total equity turnover volume and value respectively. 

The Industrial Goods industry followed with 163.852 million shares worth N19.264 billion in 982 deals. The third place was Conglomerates industry with a turnover of 74.229 million shares worth N120.488 million in 734 deals. Trading in the top three equities namely, Custodian Investment Plc, FCMB Group Plc and Access Bank Plc accounted for 683.802 million shares worth N4.001 billion in 1,247 deals, contributing 48.5 per cent and 12.5 per cent to the total equity turnover volume and value respectively. 

In the Exchange Traded Products (ETPs) space, investors traded a total of 9,219 units valued at N1.079 million were traded last week in 24 deals compared with a total of 3,015 units valued at N701,234.17 transacted the previous week in 16 deals.  

In the bonds market, a total of 2,519 units of Federal Government Bonds valued at N2.670 million were traded in 12 deals as against a total of 4,250 units valued at N4.305 million transacted the preceding week in six deals

Top price gainers and losers

A total of 20 equities appreciated last week, higher than 15 equities in the previous week, while 33 equities depreciated in price, lower than 39 equities in the previous week.

Associated Bus Company Plc led the price gainers with 29.4 per cent, trailed by African Prudential Plc with 13.6 per cent. NASCON Allied Industries Plc gained 12.5 per cent, while Learn Africa Plc appreciated by 9.8 per cent. Livestock Feeds Plc gained 9.3 per cent, just as UAC of Nigeria Plc appreciated by 9.1 per cent.

Jaiz Bank Plc and Chams Plc went up 8.7 per cent and 8.3 per cent respectively.

The Managing Director of Chams Plc, Mr. Gavin Young recently assured  the NSE of regular provision of  corporate information for enhanced investment decision in line with post listing requirements .
According to him,  the company would place premium on investment in innovative solutions and software across the commercial, consumer and government sectors of the economy to sustain its competitive edge.

Young, assured  the exchange that Chams  Plc would always take the issue of compliance with all the post listing requirements seriously, saying he was looking forward to a strong relationship with  exchange  and would be happy to make input on the best ways of achieving a strong relationship.

NPF Microfinance Bank Plc  and Forte Oil Plc were  also among the top price gainers , appreciating by  8.1 per cent apiece.

Conversely, Guinness Nigeria Plc led the price losers with 10.7 per cent, trailed by PZ Cussons Nigeria Plc with 10 per cent. Champion Breweries Plc shed 9.5 per cent, while NCR(Nigeria) Plc, Niger Insurance Plc and Neimeth International Pharmaceuticals Plc lost 9.0 per cent in order.

Nigerian Breweries Plc declined by 8.6 per cent, while Seplat Petroleum Development Company Plc depreciated by 6.8 per cent. AXA Mansard Insurance Plc and Custodian Investment Plc went down by 5.8 per cent each.