Trading activities on the Nigerian Stock Exchange (NSE) overwhelmed by persistent bearish sentiments currently rocking equities as investment value depreciated by N208 billion.
The stock market opened for four trading sessions this week as the Federal Government of Nigeria declared Friday and
Monday, 20th 2015 as public holidays to observe the end of Ramadan and Idel-Fitr celebrations.
Depreciation in large-cap stocks such as Oando Plc, Seplat Petroleum Development Company Plc, Dangote Cement Plc, Flour Mill Plc and Nestle Nigeria Plc further depressed the market with market capitalization settle at N10.628 trillion from N10.836 trillion.
Index movement indicates that the NSE All-Share Index and market capitalization depreciated by 2.15 per cent and 1.92 per cent to close on Thursday at 31,047.99 and N10.628 trillion respectively. Similarly, all the Indices finished lower during the week, with the exception of NSE Alternative Securities Market Index that closed flat.
Clearly, momentum remains with the bears at this time as recent equity sell-offs continue. Financial analyst attributes the ongoing lull in the market to pulling out of foreign investors who make up about 50 per cent of participants in the stock market since they know that the Nigerian economy significantly depends on oil revenue and they expect the economy to weaken due to the drop in the price of crude oil from $115 per barrel in June 2014 to about $57 per barrel as at 31 December 2014.
A stockbroker, Mr. Aruna Kebira said the fluctuation in the market is a temporary phenomenon that will correct itself in the long run, as investors regain confidence in the market and the sell down eases. However, analysts at United Capital Plc expect investors to stay cautious and carefully monitor market movements with the monetary policy committee meeting due next week, as meeting outcomes will likely play a key role in shaping market direction, over the near term.
Meanwhile on equity, a turnover of 1.187 billion shares worth N20.259 billion in 14,349 deals were traded this week by investors on the floor of the exchange in contrast to a total of 1.264 billion shares valued at N15.770 billion that exchanged hands last week in 17,016 deals.
The Financial Services Industry (measured by volume) led the activity chart with 928.850 million shares valued at N11.840 billion traded in 7,903 deals; thus contributing 78.26 per cent and 58.44 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with a turnover of 76.523 million shares worth N629.896 million in 979 deals. Oil and Gas Industry occupied the third place with 67.815 million shares worth N966.600million in 1,652 deals. Trading in the top three equities of Zenith International Bank Plc; Access Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 647.735 million shares worth N9.888 billion in 2,477 deals, contributing 54.58 per cent and 48.81 per cent to the total equity turnover volume and value respectively. Also traded during the week were a total of 35,774 units of Exchange Traded Products (ETPs) valued at N1.055 million executed in 14 deals compared with a total of 1,430 units valued at N586,558.50 transacted last week in 17 deals.
On retail bonds, a total of 505 units of Federal Government Bonds valued at N514, 265.14 million were traded this week in 1 deal compared with total 500 units valued at N508, 788.04 million transacted last week in 1 deal. When trading close for the week, summary of price changes shows that 13 equities appreciated in price during the week, lower than 19 equities of the preceding week.
Fifty-seven equities depreciated in price, higher than 50 equities of the preceding week, while 120 equities remained unchanged, lower than 124 equities recorded in the preceding week. Caverton Offshore Support Group Plc led gainers chart with 7.89 per cent per share to close at N3.69 kobo, followed by Ecobank Transnational Incorporated Plc with 4.76 per cent to close at N22.00 kobo, Forte Oil Plc with 4.50 per cent to close at N188.10 kobo, Unity Bank Plc with 3.84 per cent to close at N2.44 kobo per share and Diamond Bank Plc with 3.29 per cent to close at N4.08 kobo per share.
Others on the chart are, United Bank for Africa Plc with 3.10 per cent to close at N4.33 kobo, UAC of Nigeria Plc with 2.47 per cent to close at N41.00 kobo, Associated Bus Company Plc with 1.96 per cent to close at N0.52 kobo, C & I Leasing Plc with 1.92 per cent to close at N0.53 kobo, and Total Nigeria Plc with 1.84 per cent to close at N160.90 kobo.
On the other hand Trans Nationwide Express Plc led on the losers table with 22.92 per cent loss to close at N1.11 kobo, Computer Warehouse Group Plc lost 18.09 per cent to close at N3.26 kobo, Transnational Corporation of Nigeria Plc with 15.20 per cent to close at N2.12 kobo, Oando Plc with 14.17 per cent to close at N12.60 kobo per share A. G. Leventis (Nigeria) Plc with 13.57 per cent to close at N1.21 kobo.
Others on the chart are, National Aviation Handling Company Plc with 13.45 per cent to close at N4.76 kobo, Honeywell Flour Mill Plc with 13.31 per cent to close at N2.80 kobo, Costain (West Africa) Plc with 12.33 per cent to close at N0.64 kobo, Evans Medical Plc with 12.05 per cent to close at N0.73 kobo per share and Dangote Flour Plc with 10.29 per cent loss to end the week with N3.05 kobo per share.