How stock market investors lost N304bn in one week

…As All Share Index declined by 2.32%

Motolani Oseni

Investors in the equities market of the Nigerian Stock Exchange (NSE) recorded a loss of N304 billion in the first week trading of July 2019.

Specifically, at the end of the five-day trading, the NSE All-Share Index (ASI) dropped by 2.32 per cent to close at 29,270.95 basis points from 29,966.87 basis points, while the market capitalisation closed at N12.902 trillion, a decline of 2.30 per cent from N13.206 trillion the market opened for trading.

Similarly, all other indices finished lower with the exception of the NSE Industrial Goods which appreciated by 3.28 per cent to 1,123.49 basis points.

The NSE Insurance Index, NSE Consumer Goods Index, NSE Oil/Gas Index and NSE Banking Index closed in negative as they dropped by 0.97 per cent, 2.84 per cent, 0.75 per cent and 5.44 per cent to 122.55 basis points, 604.68 basis points, 251.34 basis points and 346.90 basis points respectively due to selling pressures.

According to NSE, “the total turnover of 1.025 billion shares worth N9.911 billion in 19,375 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.771 billion shares valued at N28.036 billion that exchanged hands last week in 18,660 deals.

“The Financial Services industry (measured by volume) led the activity chart with 660.844 million shares valued at N5.735 billion traded in 11,296 deals; thus contributing 64.49 per cent and 57.87 per cent to the total equity turnover volume and value respectively.

The Healthcare Industry followed with 95.150 million shares worth N61.699 million in 174 deals.

“The third place was Industrial Goods Industry with a turnover of 89.419 million shares worth N1.416 billion in 1,723 deals.

“Trading in the Top Three Equities namely, United Bank For Africa Plc, Zenith Bank Plc and FBN Holdings Plc (measured by volume) accounted for 297.889 million shares worth N3.095 billion in 3,998 deals, contributing 29.07 per cent and 31.23 per cent to the total equity turnover volume and value respectively.”

Market analyst expressed believes that the bearish run would continue as investors maintain a risk-off approach towards investing in the domestic equities market.

“We expect to see some bargain hunting in the next trading week especially on the fundamentally sound stocks which are currently trading below their fair value. Hence, we expect the overall market performance index to hedge up,” GTI Securities Limited stated.

Also traded during the week were a total of 12,375 units valued at N6.223 million were traded this week in 8 deals compared with a total of 505,460 units valued at N39.278 million that was transacted last week in 27 deals.

A total of 1.007 a million units of Federal Government Bonds valued at N1.024 billion were traded this week in 14 deals compared with a total of 47,212 units valued at N49.976 million transacted last week in 34 deals.

The price movement the chart showed that only 21 equities appreciated at price during the week, lower than 36 in the previous week. 44 equities depreciated in price, higher than 32equities in the previous week, while 103 equities remained unchanged, higher than 100 equities recorded in the preceding week.

Analysts at Cowry Asset Management Limited expected the local equities to rebound as we draw closer to earnings season and investors await positive corporate performances.