Nigerian Equities Reverses Last Week Gains, Sheds 1.12% Week-on-Week

By Abdulquddus OKELE InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian equities market on Friday reversed last week’s gain as the Nigerian Stock Exchange all-share index (NSEASI) and market capitalisation shed 1.12 percent and 0.57 percent to close the week at 36,703.58 and N12.774 trillion respectively.

“Similarly, all other indices finished lower during the week with the exception of the NSE Oil/Gas Index that appreciated by 0.85 percent, according to the NSE’s weekly stock market update. 

According to the NSE, a total turnover of 2.804 billion shares worth N54.776 billion in 17,792 deals were traded this week by investors on the domestic bourse compared to a total of 1.316 billion shares valued at N13.784 billion that exchanged hands last week in 19,169 deals.

The NSE reports that the Financial Services Industry (measured by volume) led the activity chart with 2.352 billion shares valued at N8.995 billion traded in 9,364 deals; thus contributing 83.88 percent and 16.42 percent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 178.982 million shares worth N16.849 billion in 4,297 deals. The third place was occupied by Industrial Goods Industry with a turnover of 140.570 million shares worth N27.848 billion in 794 deals.

The report showed that trading in the Top Three Equities namely – Sovereign Trust Insurance Plc, FBN Holdings Plc and Dangote Cement Plc (measured by volume) accounted for 1.917 billion shares worth N29.875 billion in 2,130 deals, contributing 68.37 percent and 54.54 percent to the total equity turnover volume and value respectively.

There were no trades recorded in Exchange Traded Products (ETPs) this week compared with a total of 1,210 units valued at N13,467.70 transacted last week in 2 deals. While  a total of 5,950 units of Federal Government Bonds valued at N6.247 million were traded this week in 2 deals, compared with a total of 2,806 units valued at N2.623 million transacted last week in 16 deals.

A summary of price changes in the review period showed that 20 equities appreciated in price during the week, lower than 30 of the previous week.

On the contrary, 43 equities depreciated in price, higher than29 of the past week, while 108 equities remained unchanged lower than112 equities recorded in the preceding week.

Cordros in its weekly market update reported that losses in Consumer Goods by 2.89 percent week-on-week (w/w),Insurance, Banking and Industrial Goods all dipping 1.98 percent, 1.29 percent and 1.03 percent respectively more than outweighed the snippet of gains in the Oil & Gas sector.

Cordros reports the Oil & Gas index appreciated on the back of gains recorded by FO 10.25 percent (w/w), BOC Gas Plc and Mobil Nigeria Plc both depreciating 9.88 percent and 3.03 percent apiece.

The update says following its November 2017 Semi-Annual Index Review, the MSCI has deleted FBNH, FO, GUINNESS, and PZ from its main MSCI Frontier Markets Indexes. Three of the stocks (with the exception of FO) were added to the MSCI Frontier Markets Small Cap Indexes, while CADBURY, DIAMONDBNK, FCMB, GLAXOSMITH, SKYEBANK, and STERLNBANK were deleted from the small cap classification.

“Notwithstanding the absence of any major short term catalyst, we think market fundamentals (amid improving macroeconomic conditions) remain strong, and the snippets of profit taking seen thus far in value stocks should create an incentive for bargain hunting,” the Cordros report affirmed.

Click here to download full PDF copy of report