Bears maintain hold on equities market •…As market capitalisation shaves 0.89%

The protracted bear run (downward trend) on the Nigerian equities market has continued unabated as market capitalisation went down 0.89 per cent to close the week at N13.591 trillion.

Again, the NSE All-Share Index (ASI) declined 0.89 per cent to close the week at 41,160.62 basis points as indicated in the Nigerian Stock Exchange’s (NSE’s) weekly market report.

Similarly, all the indices depreciated during the week with the exception of the NSE ASeM (Alternative Securities Market) Index that rose by 0.36 per cent.

Cordros Capital, an Analyst, report said all of the five NSE sectoral indices reflected the negative sentiment in the broader market. The Oil/Gas index topped the losers’ chart with a 4.51 per cent  loss week-on-week (w/w), followed by the Consumer Goods index which declined by 2.25 per cent  w/w. ‘’Accordingly, the Insurance, Banking and Industrial indices fell by 1.56 percent, 0.58 per cent and 0.25 per cent w/w.

Analysts say Year-to-Date (YTD) returns at the Nigerian Capital Market (NCM) currently stands at 0.41 per cent.

According to the Cordros report, the bears further strengthened hold on the bourse this week with successive declines recorded from Monday to Thursday, stripping about 1.24 per cent benchmark index. “Though the index closed northward on Friday, it was not good enough to prevent the local bourse from posting the negative return of 0.89 per cent for the week,’’ the report said.

Cordros reported the bearish trading justifies the weak sentiments across the market as investors, particularly the locals, wait cautiously for a major catalyst while recent data from the NSE confirms reduced foreign transactions on the bourse.

The NSE reported a turnover of 3.280 billion shares worth N52.808 billion in 25,592 deals were traded last week by investors on the floor of its bourse compared to a total of 1.342 billion shares valued at N16.086 billion that exchanged hands in the preceding week in 22,481 deals.

It further affirmed that the Financial Services Industry (measured by volume) led the activity chart with 2.741 billion shares valued at N41.891 billion traded in 13,170 deals; thus contributing 83.59 percent and 79.33 percent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with a turnover of 239.064 million shares worth 1.847 billion in 2,886 deals. The third place was occupied by Oil and Gas Industry with 98.217 million shares worth N1.598 billion in 2,997 deals.

Last week, the three most traded equities were Ecobank Transnational Incorporated Plc, Transnational Corporation of Nigeria Plc and Fidelity Bank Plc (measured by volume), accounted for 2.254 billion shares worth N37.819 billion in 3,400 deals, contributing 68.73 per cent and 71.62 per cent to the total equity turnover volume and value respectively.

Market breadth closed positive on Friday as the Nigerian bourse recorded 36 gainers and 16 losers. Premier Breweries Plc led the gainers’ chart and Flour Mills of Nigeria Plc topped the losers’ chart to end Friday’s session.

In terms of summary of price changes, the NSE recorded 28 equities appreciated in prices during the week the same with the preceding week.54 equities went down in price in the review period higher than 44 of the past week, while 118 remained unchanged lower than 128 recorded in the previous week.

Source : Tribune

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