Investors in the Nigerian Stock Exchange lost a total of N291.5bn last week as the equities market witnessed sustained profit-taking and selling pressure. Bearish sentiments dragged the stock market lower, despite positive earnings releases of some companies.
Analysts at Afrinvest Securities Limited said they observed that profit-taking and selling pressure persisted across most trading sessions as the equity market trended negative last week, posting four red closes out of five sessions, declining by 245 basis points week-on-week and dragging the year-to-date return to a loss of 92bps.
Specifically, the All Share Index declined by 90bps on Monday after heavy losses in the banking sector. On Tuesday, the market shed another 102bps with three sectors closing in the red while the industrial goods sector recorded gains.
The market, however, made a mild recovery on Wednesday as it gained 15bps, driven by gains in the consumer goods sector. Negative sentiment returned to the market on Thursday with the market declining 47bps due to sell-offs in the banking and industrial goods sector.
Though selling momentum slowed down at the close of the week, the market recorded a fourth negative close in the week, down by 22bps on Friday as the banking sector consolidated on losses, recording the largest loss week-on-week.
Analysts at Afrinvest said consequent on the losses recorded last week, they expected to see bargain hunting in early trading sessions this week. They said given the paucity of foreign portfolio participation, lingering bearish sentiments were anticipated.
A total turnover of 1.113 billion shares worth N13.465bn in 15,036 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.290 billion shares valued at N13.873bn that exchanged hands during the previous week in 17,307 deals.
The financial services industry (measured by volume) led the activity chart with 926.286 million shares valued at N9.696bn traded in 9,906 deals, thus contributing 83.25 per cent and 72.01 per cent to the total equity turnover volume and value, respectively.
The Information and Communication Technology industry followed with 73.076 million shares worth N14.664m in 35 deals. The third place was occupied by the consumer goods industry with a turnover of 36.749 million shares worth N2.562bn in 2,301 deals.
Trading in the top three equities, namely FBN Holdings Plc, Zenith Bank Plc and Diamond Bank Plc (measured by volume), accounted for 551.865 million shares worth N6.602bn in 3,116 deals, contributing 49.60 per cent and 49.03 per cent to the total equity turnover volume and value, respectively.
The ASI and market capitalisation depreciated by 2.45 per cent to close the week at 31,142.72 and N11.614tn, respectively. Similarly, all other indices finished lower with the exception of the NSE ASeM and NSE Oil/Gas indices, which appreciated by 0.21 per cent and 0.09 per cent, respectively.
Eighteen equities appreciated in price last week, lower than 24 in the previous week, while 45 equities depreciated in price, higher than 37 equities of the previous week, while 105 equities remained unchanged lower than the 107 equities recorded in the preceding week.
The top five gainers for the week were Cap Plc, Mcnichols Plc, Royal Exchange Plc, Cadbury Nigeria Plc and UACN Property Development Company Plc, which gained 10 per cent, 9.62 per cent, 9.37 per cent, 9.09 per cent and 7.14 per cent, respectively.
The top five losers were Africa Prudential Plc, FCMB Group Plc, Zenith Bank Plc, International Breweries Plc and Wema Bank Plc, whose respective share prices shed 20.83 per cent, 12.74 per cent, 11.82 per cent, 10.93 per cent and 10.47 per cent.