Incessant Sell-offs Drag Market Index 1.18% Lower
Persistent sell-offs witnessed in the nation’s stock market last week dragged the All-Share Index lower by 1.18 per cent.
The market capitalisation dropped from N11.676tn recorded on Thursday to N11.565tn on Friday, while the ASI shed 305.9 basis points to close at 31,678.70bps.
The market opened for four trading days last week as the Federal Government declared November 20 a public holiday.
The NSE, in its weekly market report, said a total turnover of 1.282 billion shares worth N23.142bn in 11,467 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.285 billion shares valued at N11.539bn that exchanged hands in the previous week in 13,245 deals.
Thirty equities appreciated in price last week against 24 losers, compared with the 24 gainers and 36 losers recorded in the previous week.
All indices finished lower, except the main board, insurance, consumer goods, oil & gas and pension indices that finished higher by 0.43 per cent, 1.38 per cent, 1.08 per cent, 0.25 per cent and 0.56 per cent, respectively, while ASeM Index closed flat.
The Financial Services Industry (measured by volume) led the activity chart with 1.058 billion shares valued at N18.744bn traded in 6,558 deals; thus contributing 82.48 per cent and 81 per cent to the total equity turnover volume and value, respectively.
The banking sector extended its bearish streak to the third week, dragging the year-to-date return of the sector lower to -13.61 per cent.
Investors continued to sell down on their holdings of counters in the sector as four counters shed value last week.
Consequently, the market breadth settled at equilibrium. Diamond Bank Plc was the top gainer in the sector with a 5.56 per cent price increase to close at N0.95.
Conversely, Jaiz Bank Plc was the worst performing stock, shedding 8.89 per cent of its value to close at N0.41.
The Oil & Gas Industry followed with 96.818 million shares worth N644.178m in 925 deals.
The Oil & Gas index gained 0.25 per cent at the close of trading on Friday, settling its year-to-date return at -12.02 per cent. There were two gainers and losers a piece, pegging the sector breadth at equilibrium.
Analysts at Meristem Securities Limited said the gain recorded in the sector could be attributed to bargain hunting activities on 11 Plc and Total Nigeria Plc, driving the sector into the green zone.
11 Plc emerged the top gainer last week, gaining 10 per cent to close at N165.
On the flip side, Forte Oil Plc lost 6.80 per cent of its share price to close at N19.20, while Oando Plc shed four per cent to close at N4.80.
The third place was Consumer Goods Industry with a turnover of 83.134 million shares worth N3.244bn in 2,114 deals.
At the close of the week, the consumer goods sector advanced by 1.08 per cent, settling its year-to-date return at -24.76 per cent.
Nine gainers outpaced two losers, bringing the sector breadth to 4.50x.
PZ led the gainers’ chart, advancing by 18.33 per cent to close at N10.65.
On the flip side, Nigerian Breweries and Cadbury Nigeria Plc were the only losers, as both counters shed 1.57 per cent and 0.54 per cent, to close at N81.50 and N9.20, respectively.
The NSE said trading in the top three equities ― Zenith Bank Plc, Diamond Bank Plc, and Oando Plc, (measured by volume) accounted for 877.505 million shares worth N16.146bn in 1,423 deals, contributing 68.43 per cent and 69.77 per cent to the total equity turnover volume and value, respectively.
The top five gainers were Prestige Assurance Plc, PZ Cussons Nigeria Plc, Consolidated Hallmark Insurance Plc, Flour Mills Nigeria Plc and NPF Microfinance Bank Plc, which appreciated by 41.07 per cent, 18.33 per cent, 15.15 per cent, 15.12 per cent, and 12.50 per cent, respectively.
The top five losers were Ikeja Hotel Plc, Lafarge Africa Plc, Jaiz Bank Plc, Law Union and Rock Insurance Plc and Unity Bank Plc, which declined by 18.54 per cent, 12.50 per cent, 8.89 per cent, 8.77 per cent and 8.60 per cent, respectively.
Analysts at Vetiva Capital Management Limited said, “We anticipate another negative start this week as investor apathy continues to weigh on market activity.”
