Equities Market   Sheds N326bn on Weak investor Sentiments 

WEEKLY REPORT

Contrary to expectations that the gains recovery witnessed in the market the previous week would be sustained last week, the equities slipped back into the bears’ territory on weak investor sentiments. In the absence of any major positive news and investors’ continued sell-off to meet obligations of school fees payment, the market shed N325.5 billion.

Specifically, the Nigerian Stock Exchange (NSE) All-Share Index fell by 2.65 per cent to close at 35,005.57, while market capitalisation ended at N12.068 trillion. Similarly, all other indices finished lower during the week with the exception of NSE Oil/Gas index that rose by 0.17 per cent. 

Daily Market Performance

Trading at the stock market resumed for week on bearish note with the NSE ASI depreciating by 0.81 per cent to close at 35,664.94, while market capitalisation closed lower at N12.29 trillion.

The depreciation recorded in the share prices of Dangote Cement, Flour Mills, GTBank, Nestle, and Dangote Sugar caused the negative performance witnessed on Monday. Also, the value of trading fell by 29.51 per cent as investors committed N2.17 billion on 114.76 million shares in 3,232 deals.

The three most actively traded sectors were: Financial Services (78.71 million shares), Construction/Real Estate (10.39 million shares), and Consumer Goods (7.98 million shares), while the three most actively traded stocks were: Zenith Bank (19.83 million shares), Access Bank (12.06 million shares) and UAC Property (10.38 million shares).

The market extended its loss to Tuesday as the index depreciated further by 0.75 per cent to close at 35,397.52, compared with the depreciation of 0.81 per cent recorded the previous day.

Again, the downward trend stemmed from losses recorded in the share prices of Dangote Cement, Access Bank, FBN Holdings, Nestle, and Lafarge Africa Plc.

 However, the value of shares traded improved, jumping by 165 per cent from N2.17 billion to N5.77 billion staked on 373.49 million shares in 4,193 deals.

The Financial Services sector led the activity chart, accounting for 314.35 million shares, followed by  Industrial Goods  with 19.73 million shares, while  Consumer Goods  sector recorded 14.49 million shares.

The most   three most actively traded stocks were: Diamond Bank (130.72 million shares), GTBank (50.14 million shares) and Zenith Bank (39.30 million shares).

A further analysis of the market performance on Tuesday showed that  all sectoral indicators closed negatively save for the NSE Oil & Gas Index that appreciated by 2.1 per cent.  Losses in Nestle (-4.9 per cent) and Nigerian Breweries Plc (-2.4 per cent) impacted the NSE  Consumer Goods Index to close  2.2 per cent lower.  The NSE Industrial Goods Index dipped 1.9 per cent on account of declines in Dangote Cement (-0.5 per cent) and Lafarge Africa Plc (-3.8 per cent). Similarly, the NSE Insurance Index and  the NSE Banking Index  shed 1.5 per cent  and 0.6 per cent respectively.

The losing streak was halted on Wednesday on bargaining hunting in shares of bellwether stocks. Consequently, appreciated by 0.19 per cent to close at 35,464.34. Market capitalisation appreciated by same margin to close higher at  N12.22 trillion.

 Investors traded 119.89 million shares worth N1.74 billion in 3,015 deals. The most actively traded sectors were: Financial Services (84.77 million shares), Consumer Goods (11.48 million shares), and Oil and Gas (7.68 million shares).

 The three most actively traded stocks were: Access Bank (13.88 million shares), Zenith Bank (12.22 million shares) and Fidelity Bank (11.40 million shares).

The  market sustained its positive performance for the second day on Thursday as the  NSE  ASI  appreciated by 0.55 per cent  to close at 35,660.044.  Although the 22 stocks declined in value and 18 appreciated, the gain posted by Dangote Cement Plc made the market to remain in the bulls’ territory.  While the market capitalisation added N70 billion to close higher at N12.22 trillion, Dangote Cement accounted for N40 billion.  The stock appreciated by 2.4 per cent to close at N213.99 per share.

The leading cement manufacturing firm had on Wednesday confirmed that it had made moves to acquire the entire share capital of PPC Limited, which is South Africa’s leading cement firm.

In a notification to the NSE, the board of directors of Dangote Cement disclosed it had communicated its  interest to acquire the entire share capital of PPC to the board of directors of the South Africa’s firm.

But the Dangote Cement explained that the acquisition talks are still at the preliminary stage and the transaction remains a potential transaction, promising to publish further details.

Meanwhile,  Okomu Oil Palm Plc led the price gainers with 5.7 per cent, trailed by Jaiz Bank Plc with 4.4 per cent. C & I Leasing Plc chalked up 4.3 per cent, while Newrest ASL Nigeria Plc and Sterling Bank Plc  followed with 4.0 per cent apiece. NEM Insurance Plc went up by 3.5 per cent, just as NPF Microfinance Bank Plc garnered 3.5 per cent.

Conversely, Neimeth  International Pharmaceuticals Plc led the price losers with 8.4 per cent. Conoil Plc and Unilever Nigeria Plc trailed by 5.0 per cent each, while Oando Plc and First Aluminium Plc 4.9 per cent and 3.7 per cent respectively.

However, the market on Friday reversed all gains recorded during the previous two trading sessions with the NSE Index shedding 1.84 per cent. As a result, the market declined by 2.65 per cent for the week.

 

Market Turnover

In terms of market turnover, a total turnover of 896.618 million shares worth N15.368 billion in 17,048 deals were traded last week, up from 887.024 million shares valued at N17.450 billion that exchanged hands  the previous week  in 16,955 deals.

But the Financial Services Industry maintained the number one spot on the activity chart  with 708.046 million shares valued at N7.793 billion traded in 9,164 deals, thus contributing 78.97 per cent and 50.71 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 56.502 million shares worth N5.509 billion in 3,414 deals. The third place was occupied by Conglomerates Industry with a turnover of 32.439 million shares worth N106.687 million in 744 deals.

 Diamond Bank Plc, Zenith Bank Plc, Guaranty Trust Bank Plc accounted for 336.181 million shares worth N5.680 billion in 2,936 deals.

Also traded during the week were a total of 1,265 units of Exchange Traded Products (ETPs) valued at N145,720.20 executed in eight  deals compared with a total of 3,000 units valued at N31,590.00 transacted  the previous week  in one  deal.

Similarly, a total of 5,290 units of Federal Government Bonds valued at N5.030 million were traded this week in 15 deals, compared with a total of 8,535 units valued at N8.660 million transacted last week in 11 deals.

 

 

Price Gainers and Losers

Meanwhile, 23 equities appreciated in price during the week, lower than the 28 of the previous week, while 45 equities depreciated in price, higher than 38 equities of the previous week. N.E.M Insurance Plc led the price gainers with 19 per cent, trailed by C & I Leasing Plc with 12.2 per cent.  International Breweries Plc chalked up 9.5 per cent, just as Newrest ASL Nigeria Plc and UAC Nigeria Plc chalked up 9.0 per cent and 5.8 per cent in that order.

Transcorp Plc garnered   5.5 per cent and Okomu Oil Palm Plc added  5.5 per, while Seplat and  Cutix Plc  gained 5.0 per cent each. Transcorp Hotels Plc 4.9 per cent  lower.

Conversely, Neimeth International Pharmaceuticals Plc led the price losers with 15.6 per cent. Skye Bank Plc trailed with a decline of  11.8 per cent.  May & Baker Nigeria Plc shed 10.6 per cent, just as Flour Mills of Nigeria Plc and Linkage Assurance Plc declined by 7.8 per cent.

Other top price losers included: Honeywell Flour Mills Plc(7.3 per cent); Oando Plc (7.0 per cent);Presco Plc (6.9 per cent); Lafarge Africa Plc (5.2 per cent) and Unity Bank Plc (5.2 per cent).