In what was a shortened trading week, due to an unusually extended national public holiday commemorating Eid-el-Fitr celebration, the bears dominated the Nigerian stock market, with the benchmark index closing by 1.54 per cent week-on-week.
Last week’s negative close reflects broad-based profit-taking amid lingering concerns about the domestic macroeconomic landscape.
Concluding the 2-day trading week, the All Share Index accordingly dropped by 450.42 or 1.52 per cent to 28,854.98 points, while market capitalisation further fell by N154.70 billion to N9.91 trillion, and consequently trimming the Year-to-Date gain to 0.74 per cent.
Market breadth was negative, with only nine gainers, topped by Oando versus 48 losers, led by Skye Bank compared to 22 gainers against 52 losers the previous week. Total volume traded shrank by 74.28 per cent to 377.80 million shares, worth N3.64 billion and traded in 7,466 deals, compared to the 1.47 billion shares, valued at N17.06 billion that exchanged hands in 21,245 deals last week.
The stock market opened for two trading sessions last week as the Federal Government of Nigeria declared Tuesday 5th, Wednesday 6th and Thursday 7th, 2016 as public holidays to observe the end of the Holy Month of Ramadan and Eid-el-Fitr celebrations.
Meanwhile, a turnover of 377.798 million shares worth N3.641 billion in 7,466 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.469 billion shares valued at N17.065 billion that exchanged hands previous week in 21,246 deals.
The Financial Services Industry (measured by volume) led the activity chart with 305.334 million shares valued at N2.011 billion traded in 4,260 deals; thus contributing 80.82% and 55.23% to the total equity turnover volume and value respectively. The Oil And Gas Industry followed with 32.753 million shares worth N341.230 million in 1,029 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 16.258 million shares worth N635.951 million in 1,179 deals.
The Top Three Equities – namely FBN Holdings Plc, Guaranty Trust Bank Plc and Access Bank Plc (measured by volume) accounted for 122.347 million shares worth N1.291 billion in 1,477 deals, contributing 32.38 per cent and 35.47 per cent to the total equity turnover volume and value respectively.
Factors Attributed To Last Week’s Decline
The week opened with reports of the Central Bank of Nigeria’s dissolution of Skye Bank’s board and management hitting the market, after which the Banking index came under pressure.
Compounding the situation further was the profit warning released by the management of Lafarge Africa. According to the report released through the Nigerian Stock Exchange, the company’s financial account for the second quarter of 2016 will stand at far gap below the comparable year due to losses incurred from naira devaluation and increase in gas price during the period.
Sectoral Indices Performance
All sector indices closed lower with the Industrial Goods index declining the most, down 4.9 per cent following losses in Wapco and Dangote Cement. The Banking index trailed closely, down by 2.6 per cent on sell-offs in Skye Bank and Diamond Bank. Similarly, the Insurance and Consumer Goods indices slid 1.9 per cent and 1.3 per cent respectively against the backdrop of losses in Mansard Insurance and Guinness. The Oil & Gas index ended the week by 1.1 per cent down.
Speaker of House of Representatives Visit To NSE
On Friday, the Speaker of the Federal House of Representatives, Yakubu Dogara and his team visited the NSE and declared full support for capital market development in Nigeria.
The visit, which marked the first time any Nigeria House of Representatives speaker would ring the closing bell on the bourse, delighted the stockbrokers community.
Dogara said the visit was to underpin the fact that the lower House is working with stakeholders to deepen the Nigerian Capital Market. According to him, “We believe having a robust stock market will go a long way in engendering economic prosperity for our teaming citizen who are putting their money in the capital market. We will take this market seriously.”
Outlook For This Week
Analysts at Afrinvest Limited said, “We expect an uptick in market performance in the coming weeks as domestic investors hunt for bargain.”
Source : Leadership