Incessant Fluctuations Reduce Stock Market Participation
The participation of investors in the nation’s stock market has reduced drastically amid the incessant fluctuations in recent times.
An analysis of the weekly performance of the Nigerian Stock Exchange showed that the market participation dropped by 7.67 per cent last week and a further 8.05 per cent at the end of trading on Monday.
The NSE, in its weekly market report, stated that a total turnover of 1.107 billion shares worth N11.192bn in 14,430 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.199 billion shares valued at N14.277bn that exchanged hands in 15,841 deals in the previous week.
Gains recorded on Friday were reversed on Monday as the All-Share Index and market capitalisation depreciated by 0.82 per cent to close at 30,614.73 basis points and N11.176tn, respectively.
Performance across sectors was totally bearish as all indices closed in the red.
The Consumer Goods index declined the most, losing 2.32 per cent following sell pressures in Nestlé Nigeria Plc, Nigerian Breweries Plc and UACN Plc.
The Oil & Gas index trailed, shedding 1.19 per cent as a result of the losses recorded in 11 Plc and Oando Plc.
Similarly, the Insurance index depreciated by 0.74 per cent due to profit taking in Cornerstone Insurance Plc and Mutual Benefits Assurance Plc.
The Banking index declined by 0.39 per cent on the back of profit taking in Zenith Bank Plc, Stanbic IBTC Holdings Plc and Guaranty Trust Bank Plc.
The Industrial Goods index declined by 0.25 per cent as a result of the price decline recorded in the share price of Lafarge Africa Plc.
Fourteen equities appreciated in price against 25 losers, which weakened the market breadth to 0.6x.
The top five price gainers were Trans-nationwide Express Plc, Forte Oil Plc, Vitafoam Nigeria Plc, Sterling Bank Plc and United Bank for Africa Plc, whose share prices appreciated by 8.47 per cent, 6.39 per cent, 5.52 per cent, 3.57 per cent and two per cent, respectively.
The top five losers were Livestock Feeds Plc, Cornerstone Insurance, Mutual Benefits, 11 Plc and UACN, which saw their respective share prices decline by 9.62 per cent, 9.09 per cent, 8.70 per cent, 8.47 per cent and seven per cent.
Analysts at Meristem Securities Limited said the market performance was dragged by profit taking activities in line with their expectations.
“Nevertheless, we envisage some buying interest to resurface in subsequent trading sessions,” they added.