Investors lose N175bn over profit-taking on equity market

Investors on the Nigerian Stock Exchange (NSE) last week continued on profit-taking, leading to market capitalisation dropping by N175billiobn or 1.51 per cent to N11.393trillion from N11.568 trillion the market opened for trading.

Consequently, the NSE All-Share Index (ASI) dropped by 1.52 per cent or 336.65 basis points to 21,861.78 basis points from 22,198.43 basis points, it closed in corresponding week.

However, the equities market Mont-Till-Date (MtD) and Year-Till-Date (YTD) returns settled at -15.3 per cent and -18.6 per cent, respectively.

Analysing by sectors, significant losses recorded in the Consumer Goods (-8.1 per cent) and Oil and Gas (-2.2 per cent) sectors weighed on the market performance, as both indices declined. The Industrial Goods (-0.5 per cent) index also followed suit. The Insurance (+3.3per cent) and Banking (+2.1per cent) indices were the sole gainers.

“In our view, the trend witnessed this week is likely to persist, as weakening market sentiment in the face of the fast-spreading coronavirus pandemic and the weakness across global markets are expected to pressure market returns. Nonetheless, we advise investors to take positions in fundamentally justified stocks,” analysts at Cordros capital explained during the weekend.

According to NSE weekly report, a total turnover of 1.452 billion shares worth N14.918 billion in 21,828 deals were traded last week by investors on the floor of the Exchange.

The report disclosed that a total of 2.804 billion shares valued at N32.559 billion that exchanged hands in the prior week’s 31,715 deals.

The report explained that “The Financial Services industry (measured by volume) led the activity chart with 1.224 billion shares valued at N10.590 billion traded in 14,944 deals; thus contributing 84.32 per cent and 70.99 per cent to the total equity turnover volume and value respectively.

“The Conglomerates followed with 50.261 million shares worth N61.457 million in 442 deals. The third place was the Consumer Goods industry, with a turnover of 47.276 million shares worth N2.509 billion in 2,225 deals.

“Trading in the Top Three Equities namely, Zenith Bank Plc, Guaranty Trust Bank Plc and FBN Holdings Plc (measured by volume) accounted for 713.795 million shares worth N8.610 billion in 8,608 deals, contributing 49.18per cent and 57.71per cent to the total equity turnover volume and value respectively.”

Nigerian Breweries plc top the losers’ chart last week, dropping 15 per cent or N4.50 to close at N25.50 from N30.00, followed by Africa Prudential Plc that dipped by 11.17 per cent or N0.43 from N3.85 to N3.42.

Also, the share price of Total Nigeria plc sheds 10 per cent or N10.70 to close at N96.30 from N107 it opened for trading last week.