Equities market dips by N188bn over weak investors trading sentiment

The equities market of the Nigerian Stock Exchange (NSE) closed on a weaker investors trading, leading to N188billion profit-taking in one week.

Last week, the bears dominated the domestic equities market, amidst continued risk-off sentiments and the absence of positive market catalysts.

For instance, the market capitalization drops to N14.268trillion last week from N14.456trillion it opened for trading.

Consequently, after four trading days of losses, the NSE All-Share Index dipped by 1.32 per cent week-on-week to 27,388.62 basis points from 27,755.87 basis points. This brings the equities market Month-till-Date and Year-till-Date performances to -5.04 per cent and 2.04 per cent respectively.

Analysing the performance by sectors, significant losses recorded in the Consumer Goods sector dampened the market performance, after the index plummeted by 6.75per cent or 34.49 basis points to 476.30 basis points from 510 79 basis points.

Also, the Banking index dropped by 2.64per cent to 357.65 basis points from 367.35 basis points, as Insurance index declined by 2.1 per cent to 126.71 basis points and Oil and Gas index depreciated by 1.28 per cent to 239.12 basis points from 242.21 basis points it opened for trading last week.

On the flip side, a gain of 1.02 per cent to 1,201.64 basis points was recorded in the Industrial Goods Index.

According to NSE weekly market report, “A total turnover of 1.499 billion shares worth N17.907 billion in 18,515 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 912.175 million shares valued at N12.126 billion that exchanged hands last week in 17,083 deals.

“The Financial Services industry (measured by volume) led the activity chart with 1.226 billion shares valued at N12.974 billion traded in 11,741 deals; thus contributing 81.79 per cent and 72.45 per cent to the total equity turnover volume and value respectively.

“The Consumer Goods followed with 83.882 million shares worth N3.090 billion in 1,937 deals. The third place was the Conglomerates industry, with a turnover of 49.719 million shares worth N104.199 million in 517 deals.

“Trading in the Top Three Equities namely, Zenith Bank Plc, Sovereign Trust Insurance Plc, and Guaranty Trust Bank Plc. (measured by volume) accounted for 636.624 million shares worth N10.123 billion in 4,539 deals, contributing 42.47per cent and 56.53 per cent to the total equity turnover volume and value respectively.”

The report stated that a total of 40,469 units of Federal Government Bonds valued at N47.681 million were traded last week in 25 deals, compared with a total of 23,923 units valued at N28.986 million transacted in prior’s week 22 deals.