Equities market indices down by 0.72% amid Profit-taking in insurance, others

Investors’ profit-taking in industrial goods and Banking indices depreciated the equities market of the Nigerian Stock Exchange (NSE) by 0.72 per cent last week to erode Oil & Gas, other indices appreciation.

The NSE All-Share Index down by 174.07 basis points to 23,871.33 basis points from 24,045.40 basis points it opened last week as investors continued to trade with caution over global economic uncertainty caused by Covid-19.

Thus, the equities market Month-Till-Date (MTD) return reduced to 3.7 per cent, as the Year-Till-Date (YTD) loss increased to -11.1per cent.

However, the NSE Industrial Goods Index suffered a heavy decline last week, dropping by 2.18 per cent or 22.56 basis points to 1,012.32 basis points from 1,034.88 basis points it closed last week.

Key factors to decline NSE Industrial Goods Index include investors profit-taking in Dangote Cement Plc that dropped by N6.50 from N150.00 to close last week at N143.50 while the share price of BUA Cement Plc dropped by N0.30 to N31.60 from N31.90.

The NSE Insurance index also depreciated by 0.56 per cent to 0.70 basis points to 124.54 basis points from 125.24 basis points, as NSE banking Index down by 0.03 per cent to 0.08 basis points to 282.33 basis points from 282.41 basis points it opened for trading last week.

On the flip side, the Consumer Goods Index gained 2.25 per cent to 411.55basis points and Oil & Gas 1.56 to 218.40 basis points last week.

According to NSE weekly report, “A total turnover of 926.418 million shares worth N9.768 billion in 20,910 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.662 billion shares valued at N18.205 billion that exchanged hands last week in 28,791 deals.

“The Financial Services industry (measured by volume) led the activity chart with 676.072 million shares valued at N5.053 billion traded in 10,753 deals; thus contributing 72.98per cent and 51.73 per cent to the total equity turnover volume and value respectively.

“The conglomerates industry followed with 71.117 million shares worth N399.502 million in 445 deals. The third place was the Consumer Goods industry, with a turnover of 48.835 million shares worth N1.569 billion in 3,497 deals.

“Trading in the Top Three Equities namely, FBN Holdings Plc, Guaranty Trust Bank and Zenith Bank Plc. (measured by volume) accounted for 335.075 million shares worth N4.061 billion in 4,885 deals, contributing 36.17 per cent and 41.58 per cent to the total equity turnover volume and value respectively.”

Analysts at Cordros Capital said, “In our opinion, 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 trade cautiously and seek trading opportunities in only fundamentally justified stocks.”

The report stated that a total of 146,484 units valued at N7.397 million were traded last week in 13 deals, compared with a total of 17,476 valued at N1.502 million transacted in prior’s week in 10 deals.

“A total of 7,878 units valued at N9.070 million were traded this week in 12 deals compared with a total of 2,438 units valued at N2.594 million transacted last week in six deals,” the report explained on Bond trading.