Stocks Extend Decline, Investors Lose N177bn
The market capitalisation of equities listed on the Nigerian Exchange Limited plunged by N176.64bn last week as the All-Share index dropped for five consecutive days.
The NGX ASI declined by 0.86 per cent to 38,921.78 basis points on Friday from 39,201.33bps the previous week, while the market capitalisation fell to N20.28tn from N20.46tn.
All indices, with the exception of NGX Consumer Goods (+0.18 per cent), NGX Oil/Gas (+2.28 per cent) and NGX Sovereign Bond (0.26 per cent), depreciated, while the NGX ASeM, NGX Industrial Goods and NGX Growth indices closed flat.
A total turnover of 1.43 billion shares worth N13.07bn in 19,315 deals were traded last week by investors on the floor of the exchange, in contrast to a total of 1.34 billion shares valued at N8.65bn that exchanged hands in 19,830 deals in the previous week.
Measured by volume, trading in the top three equities, namely FBN Holdings Plc, Access Bank Plc and Wema Bank Plc, accounted for 626.76 million shares worth N4.46 in 2,802 deals, contributing 43.95 per cent and 34.10 per cent to the total equity turnover volume and value respectively.
Twenty-five equities appreciated in price during the week, lower than 26 equities in the previous week. Thirty-four equities depreciated in price, lower than 36 equities in the previous week, while 97 equities remained unchanged as against 94 equities in the previous week.
Cornerstone Insurance Plc topped the losers’ chart as its share price fell by 15.79 per cent to N0.48.
It was followed by UPDC Plc, whose share price dropped by 10.06 per cent to N1.61 per share.
Other major losers for the week were SCOA Nig. Plc (-9.72 per cent), Glaxo SmithKline Consumer Plc (-9.56 per cent) and Wema Bank Plc (-9.41 per cent).
The top gainer during the week was Oando Plc with a share price increase of 14.30 per cent to N4.64.
It was followed by FTN Cocoa Processors Plc, which rose by 11.11 per cent to end the week at N0.50 per share.
Mutual Benefits Assurance Plc, United Capital Plc, and CHAMS Plc also saw increases of 10.71 per cent, 8.99 per cent and 4.76 per cent respectively.
Analysts at Atlas Portfolios Limited said, “We expect the bargain hunting to dominate the equity market next week amid the decline of price in the recent weeks. However, the depreciation of naira in the FX market may continue to weigh on investors’ confidence.
“In the week ahead, we anticipate cautious trading in the bourse following the MPC meeting scheduled for next week, says analysts from Cordros Capital.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”
Meanwhile, the NGX has notified the public that it had suspended trading in AXA Mansard Plc’s shares due to the redenomination of the company’s stock.
It said Mansard would be carrying out a reverse stock split to increase the nominal value of its shares from 50 kobo each to N2.00 each by the consolidation of every four shares held by each shareholder into one share.
