Profit Taking: Bearish Trend Lingers On The Nigerian Stock Market

A turnover of 1.185 billion shares worth N13.033 billion in 18.548 deals were traded this week by investors on the floor of Nigerian Stock Exchange in contrast to a total of 1.867 billion shares valued at N16.330 billion that exchanged hands last week in 21.854 deals.
In a weekly stock market analysis by the Street Journal, the financial services industry (measured by volume) led the activity chart with 882.909 million shares valued at N6.532 billion traded in 10.186 deals; thus contributing 74.49% and 50.12% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 89.432 million shares worth N159.459 million in 890 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 75.383 million shares worth N2.120 billion in 3,635 deals.
Trading in the Top Three Equities namely – United Bank for Africa Plc, Guaranty Trust Bank Plc and Fidelity Bank Plc (measured by volume) accounted for 394.778 million shares worth N3.857 billion in 2,866 deals, contributing 33.31% and 29.59% to the total equity turnover volume and value respectively.

Also traded during the week were a total of 11,383 units of Exchange Traded ProductN128,168.98 executed in 48 deals, compared with a total of 57,510 units valued at N439,941.91 transacted s (ETPs) valued at last week in 32 deals.
However, a total of 340 units of Federal Government Bonds valued at N370,066.80 were traded in 1 deal compared to a total of 5,749 units of Federal Government Bonds valued at N5.513 million transacted last week in 7 deals.
The NSE All-Share Index and Market Capitalization depreciated by 2.09% to close the week at 27,425.86 and N9.419 trillion respectively. Similarly, all other Indices finished lower during the week, with the exception of the NSE ASeM Index which closed flat. Twenty-two (22) equities appreciated in price during the week, lower than thirty-five (35) equities of the previous week.

Forty (40) equities depreciated in price, higher than thirty–one (31) equities of the previous week, while one hundred and eighteen (118) equities remained unchanged higher than one hundred and fourteen (114) equities recorded in the preceding week.
Market analysts who spoke with the Street Journal noted that the state of the nation’s economy has made many local investors to storm the market to off load shares with a view to making some money to make ends meet. Dr Bukunmi Adeolu, an investment banker who spoke with our correspondent on telephone pointed there is so much poverty in the land that many shareholders now find it handy to take care of their immediate financial needs. He noted that the failure of many State governments to pay salaries also made it difficult for Nigerians to keep their shares somewhere when they are in dire need.

A renown financial journalist, Friday Ekeoba attributed the bearish trend in the market to the palpable fear of insecurity in the country. He said no investor would be inclined to investing in an environment where his hard earned money would not be safe. He said many institutional investors most of whom are foreigners continue to sell off their shares in order to leave the country for a safe haven for their investment.
Acknowledging the Mohammadu Buahri’s effort in decimating the Boko Haram terrorists, he said government should ensure that other parts of the country are made safe as an incentive for investment drive of the government.
‘The Niger Delta avengers’ onslaught is killing the economy of this country by installment; and we seem to be unaware or pretend that all is well”, he said.

Author: News Editor

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