Stock market bearish amid sell-off on bellwether stocks
The Nigerian equity market sustained the losing streak last week, as bearish sentiment prevailed in three of the five trading sessions, following persistence sell-off in bellwether stocks.
As a result, the Nigerian Stock Exchange All Share Index (NSE-ASI) and NSE-Market capitalization value declined by 1.11% week on week to close at 27,755.87 absolute points and ₦14.56 trillion respectively as against 28,067.09 absolute points and ₦14.62 trillion previous Friday.
This in nominal term translates to a week-on-week loss of ₦162.10 billion in market capitalisation value.
However, the Industrial Goods (+0.78%) closed positive on week-on-week basis, while Consumer Goods (-6.47%), Insurance (-2.16%), Oil & Gas (-0.69%), and Banking (-0.21%) sector closed negatively.
Thus, LIVESTOCK emerged top gainers in the week; appreciated by 16.67% w/w, while LINKASSURE shed 25.81 % w/w to emerge top loser.
Overall, a total turnover of 912.175 million shares worth N12.126 billion in 17,083 deals were traded last week by investors on the floor of the Exchange.
This is in contrast to a total of 1.478 billion shares valued at N20.295 billion that exchanged hands in the previous week in 23,263 deals.
The Financial Services industry led the activity chart with 624.219 million shares valued at N7.129 billion traded in 9,640 deals; thus contributing 68.43% and 58.79% to the total equity turnover volume and value respectively.
Thus, the Conglomerates followed with 93.204 million shares worth N452.093 million in 861 deals.
The third place was Oil and Gas industry, with a turnover of 59.267 million shares worth N124.638 million in 1,254 deals.
Trading in the Top Three Equities namely, Zenith Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc. accounted for 304.089 million shares worth N5.788 billion in 4,290 deals, contributing 33.34% and 47.73% to the total equity turnover volume and value respectively.
GTI Securities note that amid the uninspiring earnings results posted so far by many of the medium and large capitalized companies, the firm analysts expect investors’ sentiment to remain flat in the next trading week.
“However, we believe the expected earnings result of the five biggest lenders – First Bank, UBA, Zenith, GTB, and Access (FUZGA) may spark modest buy sentiment if released next week and print strong”, GTI Securities stated.
Stock market bearish amid sell-off on bellwether stocks By Ogochi Ndubuisi
