Sentiments remained dampened on the Nigerian stock market, as broad-based selloffs weighed on the benchmark index to close 0.17 per cent week-on-week lower.
The negative sentiment stemming from an uncertain domestic economic landscape further accentuated the continued release of disappointing corporate actions for half year, 2016. The market witness Wapco profit warning ahead of its half year 2016 results, and a lackluster second quarter earning release from Nigerian Breweries.
Consequently, the stock market declined 0.17 per cent week-on-week to close at 28,805.45 points. The week’s proceedings reduced the Year-to-Date gain to 0.6 per cent, while market capitalization declined by N17 billion to N9.89 trillion.
Performance across sectors was mixed for the week, the Industrial Goods index led sector gainers, up 1.5 per cent. The Consumer Goods index followed, appreciating 0.9 per cent. On the contrary, the Oil & Gas and Banking indices declined by 1.3 per cent and 0.2 per cent, while Insurance index declined by 1.8 per cent.
Daily Performance Summary
The stock market opened the week on a bearish note as persistent sell-offs in large-cap stocks drove the broader index 0.14 per cent lower. On Tuesday there was a change in sentiment as equities rebounded 0.2 per cent on account of price appreciation in bellwethers. However, the benchmark trended southwards on Wednesday and Thursday, down 0.4 per cent and 0.1 per cent respectively. The All Share Index rose 0.4 per cent on Friday as investors sort for bargains.
Total volume traded climbed by 204.24% to 1.15 billion shares, worth N13.62 billion and traded in 21,868 deals, compared to the 377.80 million shares, valued at N3.64 billion that exchanged hands in 7,466 deals last week.
The Financial Services Industry by volume led the activity chart with 868.827 million shares valued at N6.110 billion traded in 13,046 deals. The Conglomerates Industry followed with 103.304 million shares worth N272.848 million in 1,111 deals, while the Consumer Goods Industry with a turnover of 66.743 million shares worth N3.501 billion in 3,368 deals.
FBNH traded 134.16 million, Guaranty Trust Bank and Access Bank sold 120.20 million and 99.64 million shares to maintain the top positions by volume, collectively accounting for 30.80 per cent of total volume traded during the week, while Guaranty Trust Bank, Dangote Cement and Nigerian Breweries shares worth of N2.82 billion, N1.76 billion and N1.35 billion, respectively accounted for 43.57 per cent of total value of transactions.
Gainers and Losers
Market breadth was negative, with 22 gainers versus 38 losers compared to 9 gainers against 48 losers the previous week. The best performers for the week were Honeywell Flour by 14.79 per cent gain, United Capital up by 7.69 per cent and Zenith Bank appreciated by 6.02 per cent. On the other side, Skye Bank depreciated by 31 per cent, NPF Microfinance shed 21.01 per cent and Trans nationwide Express dipped by 18.55 per cent were the worst performers.
Corporate Releases For The Week
Five companies released their second quarter for the period ended June 30, 2016. Nigerian Breweries profit after tax depreciated by 24.3 per cent, United Capital grew its PAT by 154.9 per cent, Trans National Express’ PAT up by 2 per cent, Chams profit was down by 134.4 per cent and Pharmdeko PAT depreciated by 197.9 per cent.
Outlook for the week
Capital market analysts have said, this week, we expect bargain hunting activities amid increased upside potentials.
Analysts at Cordros Capital noted, “We expect market momentum to be driven by the release of second quarter, 2016 earnings in the coming week; wherein better-than-expected results would bolster investor confidence while negative earnings would further spook investors.”
Source : Leadership