Investors Incur N169bn Loss As Earnings Season Nears
Investors lost N169bn in value at the close of trading on the Nigerian Stock Exchange last week as the earning season for the first half of the year is expected to begin soon.
It was a four-day trading week as the Federal Government declared Wednesday as a public holiday to mark the Democracy Day celebrations.
The NSE All-Share Index and market capitalisation dropped by 1.27 per cent to close at 30,046.70 basis points and N13.233tn respectively.
Similarly, all other indices depreciated, with the exception of the NSE Banking Index, NSE Insurance Index, NSE-AFR Bank Value Index and NSE Oil/Gas Index which rose by 0.01 per cent, 0.86 per cent, 0.23 per cent and 0.28 per cent respectively while NSE ASeM Index closed flat.
A total turnover of 868.739 million shares worth N15.792bn in 12,201 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 768.983 million shares valued at N12.546bn that exchanged hands in 11,291deals the previous week.
The financial services industry (measured by volume) led the activity chart with 674.654 million shares valued at N9.295bn traded in 6,651 deals, thus contributing 77.66 per cent and 58.86 per cent to the total equity turnover volume and value respectively.
The ICT industry followed with 69.205 million shares worth N3.352bn in 769 deals, while the third place was occupied by the consumer goods industry with a turnover of 51.550 million shares worth N2.342m in 1,915 deals.
Trading in the top three equities, namely Guaranty Trust Bank Plc, Zenith Bank Plc, and Wapic Insurance Plc (measured by volume), accounted for 359.451 million shares worth N7.774bn in 2,252 deals, contributing 41.38 per cent and 49.23 per cent to the total equity turnover volume and value respectively.
Nineteen equities appreciated in price last week, higher than 15 in the previous week; 31 equities depreciated in price, lower than 44 equities in the previous week, while 118 equities remained unchanged, higher than 109 equities in the preceding week.
“We reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture, leaves scope for market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term,” analysts at Cordros Capital Limited said in a note.
Analysts at Afrinvest Securities Limited noted that the stock market continued its bearish run last week following losses on three of the four trading days.