Equities market loses N186bn in three days

As the Nigerian Stock Exchange (NSE) resumed trading last Wednesday, due to the federal government two days public holiday declared to commemorate the Eid-El-Kabir celebrations, the equities market segment of the Exchange depreciated by N186 billion in three days of trading as high–mid capitalised shares recorded profit-taking.

For instance, the market capitalization, which represents the total value of investors’ assets, depreciated by N186 billion or 1.40 per cent to close the week at N13.121 trillion from N13.307 trillion it opened for trading, attributable to sustained losses in Nestle Nigeria, Stanbic IBTC and Ecobank Transnational Incorporated in the week under review.

The NSE All-Share Index, which tracks the performance of the equities market in terms of equity price movement, closed trading at 26,925.29 basis points, 1.40 per cent or 381.52 basis points decline from 27,306.81 basis points the equities market opened for trading last week.

Meanwhile, investors traded 726.607 million shares worth N10.459 billion in 12,915 deals during the week on the floor of the Exchange in contrast to a total of 1.081 billion shares valued at N12.014 billion that exchanged hands in 16,246 deals in the prior week.

As a result, all of the five major sector finished lower last week, with the exception of NSE Premium Index which appreciated by 0.64 per cent.

However, The Financial Services industry (measured by volume) led the activity chart with 554.910 million shares valued at N6.499 billion traded in 8,376 deals; thus contributing 76.37 per cent and 62.14 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 76.161 million shares worth N86.854 million in 621 deals. The third place was the Consumer Goods Industry with a turnover of 29.783 million shares worth N754.919 million in 1,855 deals.

Trading in the Top Three Equities namely, Guaranty Trust Bank Plc, Zenith Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 303.101 million shares worth N5.404 billion in 2,842 deals, contributing 41.71 per cent and 51.67 per cent to the total equity turnover volume and value respectively.

A look at the price movement chart showed that only 15 equities appreciated at price during the week, higher than 12 equities in the previous week. 34 equities depreciated in price, lower than 43 equities in the the previous week, while 119 equities remained unchanged, higher than 113 equities recorded in the preceding week.

B.O.C. Gases led the price gainers by 9.87 per cent or N0.55 to close at N6.12 per share, trailed by Union Diagnostic & Clinical Services that rose by 9.09 per cent or two kobo to close last week at 24 kobo per share, while Unity Bank appreciated by 7.81 per cent or N0.05 to close last week at N0.69 per share for trading last Friday.

Conversely, RAK Unity Petroleum Company led the price losers by 25 per cent or N0.10 to close at N0.30 per share, trailed by UAC of Nigeria that falls by 18.18 per cent or N1 to close at N4.50 per share while Ecobank Transnational Incorporated dipped 17.24 per cent or N1.25 to close by N6 per share.

On the market outlook, Analysts at GTI Securities Limited said that “Amid rising uncertainty in the global market due to the prolong trade spat between the U.S. and China, we expect the overall market sentiment to remain flat in the next trading week.