The continuing bear run made the Nigerian equities market to record its third consecutive decline last week. The Nigerian Stock Exchange (NSE) All-Share Index fell by 1.3 per cent to close at 40,472.45, while market capitalisation shed N199.2 billion to close at N14.66 trillion. The sustained bearish run had reduced the year-to-date growth of NSE ASI to 5.8 per cent.
Apart from the NSE ASI that declined, all other indices finished lower with the exception of the NSE Consumer Goods Index which appreciated by 0.03 per cent, while the NSE ASeM Index closed flat.
However, market analysts said despite continued selloffs in the equities market, still-strengthening macroeconomic fundamentals remain suggestive of gains on the exchange.
On the first day of trading, equities market capitalisation went down by N124.9 billion as bearish trading continued on the Nigerian bourse. The index declined by 0.84 per cent to close lower at 40,677.61. However, activity level was mixed as volume of shares traded grew 2.0 per cent to 218.8 million shares while value of shares traded dipped by 47.3 per cent to N2.2 billion.
In all, 32 stocks lost value while only 11 stocks appreciated. C & I Leasing Plc led the laggards with 9.3 per cent trailed by First Aluminium Nigeria Plc with 8.8 per cent. Japaul Oil & Maritime Services Plc shed 7.5 per cent, just as Okomu Oil Palm Plc, Oando Plc, AXA Mansard Insurance Plc and Diamond Bank Plc depreciated by 5.0 per cent, 4.9 per cent, 4.8 per cent and 4.7 per cent respectively.
Diamond Bank Plc last Friday recorded a loss of N9.011 billion for the year 2017 financial year while its PAT for first quarter in 2018 fell by 82 per cent to N784 million, from N5.049 billion in the corresponding period of 2017.
On the positive side, Caverton Offshore Support Group Plc led the price gainers with 4.9 per cent, followed by Sterling Bank Plc with 3.8 per cent. Mutual Benefits Assurance Plc chalked up 3.5 per cent, while FCMB Group Plc and Cutix Plc went up by 3.5 per cent, and 3,2 per cent in that order.
Analysts at SCM Capital Limited said: In the interim, we see a mixed sentiment albeit with a bearish bias. However, we maintain that the current valuation provides attractive entry opportunity.”
Meanwhile, on sectoral basis, four sectors closed lower while only the NSE Oil & Gas Index flat. The NSE Insurance Index led laggards, down 1.7 per cent, trailed by the NSE Consumer Goods Index with 1.6 per cent. The NSE Banking Index and NSE Industrial Goods Index shed 0.4 per cent and 0.2 per cent in that order.
On the second trading day, the bears tightened their grip on the market as the index depreciated by 0.15 per cent to close at 40,615.42, on losses recorded in the share prices of FBN Holdings, Zenith Bank, UBA, GTBank, and UAC of Nigeria. Similarly, the market capitalisation depreciated by same margin to close at N14.71 trillion.
Activity level, however, was mixed as volume of shares traded contracted by 7.0 per cent to 203.4 million shares while value of shares traded rose by 98.5 per cent to N4.4 billion. The top traded stocks by volume were GTBank (37.2 million shares), UBA (31.5 million shares) and Fidelity Bank (14.5 million) while the top traded stocks by value were GTBank (N1.6 billion), Nigerian Breweries (N735.2 million) and Nestle Nigeria (N510.7 million).
Also, in terms of sectoral performance was largely bullish as three of five indices tracked closed in the green. The Banking Index was the lone loser, shedding 1.3 per cent. Positively, the NSE Consumer Goods Index led gainers, up 1.4 per cent, while the NSE Insurance Index rose by 0.95 per cent. The NSE Industrial Goods Index appreciated by 0.08 per cent, while the NSE Oil & Gas Index closed flat.
However, on Wednesday the losing streak was halted on as bargain hunters entered the market. Consequently, the benchmark index rose by 0.93 per cent to close at 40,992.97, while market capitalisation added N136.8 billion to close at N14.85 trillion.
The appreciation recorded in the share prices of Dangote Cement, Nigeria Breweries, Zenith Bank, Ecobank Transnational, and Nestle drove the growth. Trading activity was mixed as the volume traded rose 27.6 per cent to 259.5 million shares while the value traded declined by 1.5 per cent to N4.4 billion. The top traded stocks by volume were Diamond Bank (68.6 million shares), Zenith Bank (33.8 million shares) and GTBank (31.4 million shares) while the top traded stocks by value were GTBank (N1.4 billion), Nestle (N1.1 billion) and Zenith Bank (N943.1 million).
The recovery in the market on Wednesday was not sustained as the index depreciated by 0.83 per cent to close at 40,651.41. The market capitalisation depreciated by 0.83 per cent to close at N14.73 trillion.
The depreciation recorded in the share prices of Dangote Cement, Nigeria Breweries, UBA, Access Bank, and Lafarge Africa were mainly responsible for the decline.
However, activity level strengthened as volume and value traded rose 63.5 per cent and 73.4 per cent to 424.4 million shares and N7.6 billion respectively. Zenith Bank (170.6 million shares), Access Bank (44.2 million shares) and FCMB (25.9 million shares)
Performance across sectors was bearish as four of the five indices closed in the red. Only the NSE Oil & Gas Index closed positive, rising marginally by 0.01 per cent. The Industrial Goods Index was the highest decliner, shedding 1.6 per cent.
The NSE Consumer Goods Index shed 1.1 per cent, while the NSE Banking Index went down by 0.4 percent just as the NSE Insurance Index fell by 0.04 per cent.
Meanwhile, a total turnover of 1.457 billion shares worth N23.666 billion in 19,674 deals was traded last week by investors on the floor of the exchange in contrast to a total of 1.586 billion shares valued at N25.992 billion that exchanged hands two weeks ago in 21,115 deals.
The Financial Services Industry remained the most active with 1.223 billion shares valued at N16.825 billion traded in 11,092 deals, thus contributing 83.9 per cent and 71.1 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 76.430 million shares worth N5.188 billion in 3,425 deals. The third place was occupied by Oil and Gas Industry with a turnover of 57.193 million shares worth N527.880 million in 2,237 deals.
Trading in the top three equities namely: Zenith Bank Plc, GTBank and United Bank for Africa Plc, accounted for 491.649 million shares worth N14.159 billion in 3,265 deals.
Price Gainers and Losers
The price movement chart displayed that 20 equities appreciated in price during the week, higher than 35 in the previous week, while 54 equities depreciated in price, higher than 49 equities of the previous week. Sovereign Trust Insurance Plc led the price gainers with 30 per cent, followed by Mutual Benefits Assurance Plc and NPF Microfinance Bank Plc that chalked up 10.2 per cent. Fidson Healthcare Plc and Beta Glass Plc went down by 7.0 per cent and 4.9 per cent respectively.
Other top price gainers included: Continental Reinsurance Plc (4.9 per cent); UACN Property Development Company Plc (4.6 per cent); Prestige Assurance Plc (4.3 per cent); Cutix Plc (3.2 per cent) and CAP Plc garnered 3.2 per cent and 2.8 per cent respectively.
Conversely, Japaul Oil & Maritime Services Plc led the price losers with 25 per cent, trailed by Skye Bank Plc with a growth of 19.2 per cent. Diamond Bank Plc also went by 18.4 per cent, just as Cement Company of Northern Nigeria Plc declined by 17.2 per cent in that order.
Other top loser included: Fidelity Bank Plc14.8 per cent; Veritas Kapital Assurance Plc (14.2 per cent); Equity Assurance Plc (13.7 per cent);Okomu Oil Plc (12.8 per cent); C & I Leasing Plc (12.8 per cent) and Nigeria Insurance Plc (12.5 per cent).
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