NSE’s equities market depreciates by 0.05% amid profit-taking in banking shares

By Motolani Oseni

The equities market of the Nigerian Stock Exchange (NSE) depreciated by 0.05 per cent as profit-taking in banking shares for the better part of last week offset bargain buying.

Specifically, selloffs of Guaranty Trust Bank Plc that depreciated by 5.8 per cent, United Bank for Africa Plc (UBA) that was down by 3.9 per cent and Zenith Bank Plc that declined by 1.2 per cent dragged the All Share Index 0.05 per cent lower, to 25,591.95 basis points from 25,605.64 basis points the market opened for trading.

Consequently, the equities market performance Year-TillDate (YTD) loss increased to -4.7 per cent. Performance across sectors within our coverage was broadly negative with the Banking (-2.7per cent), Oil & Gas (-1.3 per cent), Insurance (-0.7 per cent), and Consumer Goods (-0.3 per cent) indices all closing lower.

The Industrial Goods (+0.4 per cent) index was the sole gainer.

For price changes last week, 23 shares appreciated at price, lower than 41 reported by the NSE in prior’s week trading.

Also, 38 stocks depreciated, higher than 19 stocks reported in last week’s trading activities on the NSE.

Top gainers for last week was Eterna Plc that gained 28.85 per cent or N0.60 to N2.86 from N2.08 it opened for trading while C& I leasing Plc added 11.11 per cent to N4.00 from N3.60 it equities market opened for trading last week.

On the flip side, Royal Exchange Plc top losers chart, dropping 15.15 per cent to close at N0.28 from N0.33 while Consolidated Hallmark Insurance plc was down by 14.71 per cent to close at N0.29 from N0.34 per share.

Also, the share of Livestock feeds Plc was down bt 10.61 per cent to N0.59 from N0.66 it opened for trading last week.

The Exchange weekly report stated that “A total turnover of 1.226 billion shares worth N10.842 billion in 19,529 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 2.209 billion shares valued at N10.957 billion that exchanged hands last week in 18,013 deals.

“The Financial Services industry (measured by volume) led the activity chart with 980.482 million shares valued at N6.987 billion traded in 11,634 deals; thus contributing 79.99 per cent and 64.44per cent to the total equity turnover volume and value respectively.

“The Conglomerates Industry followed with 59.758 million shares worth N72.458 million in 550 deals.

The third place was the Consumer Goods industry, with a turnover of 58.869 million shares worth N1.349 billion in 2,862 deals.

“Trading in the top three equities namely Custodian Investment Plc, Zenith Bank Plc and United Bank for Africa Plc. (measured by volume) accounted for 404.171 million shares worth N3.847 billion in 3,910 deals, contributing 32.97 per cent and 35.48 per cent to the total equity turnover volume and value respectively.”

The report explained that a total volume of 50,000,000 units at N10.00 each of Meristem Growth Exchange Traded Fund and Meristem Value Exchange Traded Fund was admitted to trading at the NSE on last Thursday.

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The Exchange added that “A total of 7,125 units valued at N7.762 million were traded this week in 15 deals compared with a total of 1,016 units valued at N1.099 million transacted last week in eight deals.

“A total of 54,457 units valued at N283.940 million were traded this week in 18 deals compared with a total of 126,119 units valued at N655.919 million transacted last week in 36 deals.”

Analysts at Cordros capital added that “Our view continues to favour cautious trading as risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions.

“Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks.”