All-Share Index Falls 0.2% as Market Remains Bearish

Goddy Egene
The nation’s stock market remained bearish last week leading to a decline of 0.15 per cent in the Nigerian Exchange Limited (NGX) All-Share Index to close at 38,808.01, while market capitalisation ended at N20.310 trillion.

The market had similarly dipped the previous week. However, unlike two weeks ago when the volume and value of trading also decline, investors staked more funds last week.

A total of 1.263 billion shares worth N10.759 billion were traded in 19,975 deals last week, up from 887.037 million shares valued at N9.193 billion that exchanged in 17,837 deals the preceding week.
After the earning season and as the second quarter began recently, investors are said to be realigning their portfolio with eyes on yield movements in the fixed income (FI) market. Also, the nation’s subsisting stagflation environment remains a potent threat to investment returns in the financial market.

However, analysts at Cordros Securities said: “With the Q1-2021 earnings season on the horizon, we believe investors will be looking for clues on how corporate earnings will evolve in 2021, given the expected improvement in macroeconomic conditions.

“However, we expect the lull in the market to persist as investors remain perturbed by the rising yields in the FI market. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”

The Financial Services Industry remained the most traded with 853.125 million shares valued at N6.754 billion traded in 11,127deals, thus contributing 67.5 per cent and 62.7 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 103.226 million shares worth N704.563 million in 954deals.

The Oil and Gas Industry occupied the third position with a turnover of 89.472 million shares worth N353.533million in 1,479deals.Trading in the top three equities namely Fidelity Bank Plc, FBN Holdings Plc and Access Bank Plc accounted for 390.775 million shares worth N2.021 billion in3, 241deals.

A look at the price movement chart showed that the bears visited 47 equities higher than 40 equities in the previous week, the bulls visited 18 equities higher than 17 equities in the previous week.

Custodian Investment Plc led the price losers with 17.8 per cent, trailed by Northern Nigeria Flour Mills Plc with 13.7 per cent. Mutual Benefits Assurance Plc shed 12.8 per cent. Fidson Healthcare Plc went down by 9.8 per cent, while Cutix Plc and Tripple Gee & Company Plc declined by 9.7 per cent apiece. Other top price losers included: NCR (Nigeria) Plc (9.6 per cent); Studio Press Plc (9.5 per cent); Champion Breweries Plc (9.0 per cent ) and FCMB Group Plc (8.9 per cent).

On the positive side, FTN Cocoa Processors Plc led the price gainers with 16.2 per cent. Morison Industries Plc trailed with 9.3 per cent, while Royal Exchange Plc appreciated by 8.3 per cent. Meyer Plc garnered 8.1 per cent. Other top price gainers included: UAC of Nigeria Plc (7.5 per cent); Guinness Nigeria Plc (7.2 per cent); UACN Property Development Company Plc (5.3 per cent); Linkage Assurance Plc (5.0 per cent); FBN Holdings Plc (4.8 per cent) and Chams Plc (4.7 per cent).