Transactions value up 98 percent in bearish week
The equities market went up 98 percent in total value traded in the first trading week of the year 2017, despite the week being largely bearish.
The week had only four trading sessions out of which the first three sessions closed in negative territory, while the last trading day (Friday) closed up, though with a 2.32 percent decline in market indicators.
The Nigerian Stock Exchange (NSE) All-Share Index (ASI) and Market Capitalization closed the week at 26,251.39 and N9.032 trillion respectively as all other Indices finished lower during the week. This is in contrast to the previous week when ASI and Market Capitalization appreciated by 1.47 percent to close the week at 26,874.62 and N9.247 trillion respectively, while all other Indices finished higher during the previous week with the exception of the NSE ASeM, NSE Oil/Gas and NSE Industrial Goods Indices that depreciated by 2.35 percent, 1.47 percent and 0.15 percent respectively.
However, statistics from the NSE’s weekly capital market report, showed turnover and value grew 964 percent and 98 percent respectively, as total turnover of 4.319 billion shares worth N7.376 billion in 9,330 deals were traded last week by investors in comparison with a total of 405.939 million shares valued at N3.724 billion that exchanged hands in the previous week in 6,363 deals.
The top three traded equities in volume terms were Unity Kapital Assurance, Omoluabi Savings and Loans and FCMB Group. They accounted for 3.863 billion shares worth N3.013 billion in 286 deals, contributing 89.45 percent and 40.85 percent to the total equity turnover volume and value respectively.
Eighteen equities led by UACN Property appreciated in price during the week, lower than 37 equities of the previous week. Thirty-one equities led by Nigerian Aviation Handling Company depreciated in price, higher than 21 equities of the previous week, while 126 equities remained unchanged, as against the 117 in the preceding week.
Topping the activity chart in terms of volume for the week was the Financial Services Industry with 4.177 billion shares valued at N5.306 billion traded in 5,047 deals. The Financial Services Industry thus contributed 96.71 percent and 71.94 percent to the total equity turnover volume and value respectively.
Coming next was the Oil and Gas Industry with 65.827 million shares worth N594.522 million in 1,385 deals, while the third place was occupied by Conglomerates Industry with a turnover of 26.487 million shares worth N48.163 million in 299 deals.
Also traded during the week were a total of 55 units of Exchange Traded Products valued at N505.65 executed in 11 deals, compared with a total of 9,965 units valued at N56,446.35 transacted last week in 16 deals. A total of 5,100 units of Federal Government Bonds valued at N5.120 million were traded this week in 2 deals, as against no bond transaction last week.
Week in review
The equities market resumed the year on Tuesday, 3rd January 2017 on a low note, to record a decline of 0.96 percent in contrast to the positive momentum recorded in the final trading days of the year 2016.
On Wednesday, the equities market sustained the negative trend that the year began with as market indices recorded a decline of 0.46 percent, while another 1.07 percent decline was recorded on Thursday, bringing the value of losses incurred to N139.3 billion.
The market’s performance however improved on Friday, as indicators recovered by 0.15 percent, posting its first gain of the new year, when the Nigerian Stock Exchange’ All Share Index (NSEASI) added 39.3 points to close at 26,251.39 in contrast to 282.95 shed on Thursday to settle at 26,212.09.
The market capitalization also added N13.5 billion to close at N9.032 trillion as against N97.4 billion dropped previously when the market capitalization settled at N9.019 trillion.
The bearishness that dominated most of the week eased but trading remained weak as market breadth closed with 13 gainers against 16 losers.
Cadbury, Mobil and NEM all lost 5 percent to close at N9.50, N265.05 and 95 kobo respectively. Union Bank and Nigerian Aviation Handling Company followed with a depreciation of 4.92 and 4.90 percent each, closing at N5.22 and N2.72 respectively.
On the other hand, UCAP led Friday’s advancing stocks by 4.86 percent to close at N3.02, FCMB added 4.46 percent to close at N1.17, Oando grew 3.30 percent to close at 4.69, Eterna appreciated 3.13 percent to close at N3.30 kobo, and Access Bank gained 2.28 percent to close at N6.28.
