NSE plunges: N611bn knocked off value as fear of Coronavirus hits financial markets

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Oscar Onyeama, DG NSE

NSE plunges: N611bn knocked off value as fear of Coronavirus hits financial markets

The Nigerian Stock Exchange  went down significantly last week on the fear of Coronavirus which instigates sharper sell-off. Equities market capitalisation value declined N610.6 billion to settle at N13.7 trillion.

On that, the local bourse sustained its bearish streak on all trading sessions, worsening on Friday as investors exited positions after the first incidence of “Coronavirus” was announced in Lagos.

Afrinvest said:” saw several earnings releases that were unimpressive, although some corporates announced attractive dividends”.

Consequently, the All-Share index lost 4.3% week on week to 26,216.46 points, due to sell-offs in AIICO (-22.2%), NIGERIAN BREWERIES (-21.4%) and FBNH (-18.3%).

Similarly, year to date return worsened to -2.3%.

Activity level was up as average volume and value traded rose 3.2% and 35.5% to 309.4 million units and ₦4.9 billion respectively.

The most traded stocks by volume were GUARANTY (354.3 million units), UBA (224.2 million units) and ZENITH (221.6 million units).

Also, GUARANTY (₦9.3 billion), ZENITH (₦4.2 billion) and NIGERIAN BREWERIES (₦1.9 billion) led by value.

Performance across sectors was unimpressive week on week. The Industrial Goods index (+1.1%) was the lone gainer due to price accretion in BUACEMENT (+3.1%).

On the flip side, sell pressures in FBNH (-18.3%), WEMABANK (-18.2%) and ETI (-15.6%) compelled the sharpest loss in the Banking index (-11.8%).

Trailing, the Insurance and Consumer Goods indices dipped 8.2% and 3.8% respectively owing to price declines in AIICO (-22.2%) and NIGERIAN BREWERIES (-21.4%).

Finally, the loss in OANDO (-17.2%) dragged the Oil & Gas index (-2.1%) down.

Investor sentiment as measured by market breadth (advance/decline ratio) waned to 0.1x as 5 tickers gained against 61 that declined.

LAWUNION (+11.1%), EKOCORP (+5.8%) and BUACEMENT (+3.1%) led the top gainers while REDSTAR (-27.0%), SKYAVN (-26.8%) and NPFMCRFB (-23.4%) led the decliners.

“We anticipate a sustained downtrend in the coming week, although there are bargain hunting opportunities”, Afrinvest said.

NSE plunges: N611bn knocked off value as fear of Coronavirus hits financial markets