Equities market extends losing streak with N169bn in one week

Motolani Oseni

The equities market of the Nigerian Stock Exchange (NSE) extended its bearish movement to lose N169 billion in four trading days last week on the backdrop of investors’ profit-taking amid federal government one-day public holiday.

The federal government had declared Wednesday, June 12, 2019, as public holiday to mark the Democracy Day celebrations.

Last week market statistics obtained showed that the market capitalization of the Exchange, dipped N169 billion or 1.27 per cent to close trading at N13.233 trillion from N13.402 trillion it opened.

Also, the All-Share Index (ASI) shed 385.43 basis points, representing a decline of 1.27 per cent to close at 30,046.70 basis points from 30,432.13 basis points it opened for trading last week.

Analysts at Afrinvest Limited noted that “We expect that investors would begin to cherry pick fundamentally sound stocks as we approach H1:2019 earnings session.”

Also, analysts at APT Securities and Funds Limited said that “We might see more down days as more investors eye savings and a riskless asset. However, we expect to see a more up-days opportunity for stocks that have shed weight in the week under review.”

According to the NSE weekly market report, all other indices depreciated with the exception of the NSE Banking Index, NSE Insurance Index, NSE-AFR Bank Value Index and NSE Oil/Gas Index which appreciated by 0.01 per cent, 0.86 per cent, 0.23 per cent and 0.28 per cent respectively while the NSE ASeM Index closed flat.

A look at the price movement chart showed that only 19 equities appreciated in price during the week, higher than 15 in the previous week.

31 equities depreciated in price, lower than 44 equities of the previous week, while 118 equities remained unchanged, higher than 109 equities recorded in the preceding week.

Forte Oil recorded the highest price gain of 14.17 per cent, to close at N29.40 per share.

Glaxo SmithKline Consumer Nigeria followed with a gain of 11.11 per cent, to close at N8.50, while Consolidated Hallmark Insurance rose by 10 per cent to close at 22 kobo per share.

Royal Exchange gained by 9.09 per cent to close at 24 kobo, while Associated Bus Company rose by 7.14 per cent to close at N0.30 per share.

Conversely, Nigerian Aviation Handling Company led the losers’ chart by 11.80 per cent, to close at N2.99 per share.

Cutix came second with a decline of 11.25 per cent to close at N1.42, while Cement Company of Northern Nigeria declined by 10 per cent to close at N13.50 per share.

C & I Leasing declined by 9.87 per cent to close at N6.30, while NPF Microfinance Bank down by 9.72 per cent, to close at N1.30 per share.

Meanwhile, a total turnover of 868.739 million shares worth N15.792 billion in 12,201 deals was traded this week by investors on the floor of the Exchange in contrast to a total of 768.983 million shares valued at N12.546 billion that exchanged hands last week in 11,291 deals.

The Financial Services Industry (measured by volume) led the activity chart with 674.654 million shares valued at N9.295 billion traded in 6,651 deals; thus contributing 77.66 per cent