Investors’ low appetite for stocks heighten as uncertainties in global, domestic space persist

Indices slump further by 2.35%, analysts predict gloomy outlook

The Nigerian equities market suffered another week of losses as worries about the impact of the coronavirus pandemic heightened with oil prices declining to 17-year lows lastweek.

Specifically, at the close of trading last week, the NSE All-share index and market capitalisation by depreciated by 2.35 per cent 1q to close the week at 22,198.43 and N11.568 trillion respectively.

All other indices finished lower with the exception of NSE Banking, NSE Insurance and , 2.80 per cent and 0.22 per cent while NSE ASeM Index closed flat.

Analysts argued that with the continuous spread of the Covid-19 across the world as well as the fast declining crude oil prices, the Nigerian equities market would remain pressured in the short term despite the attractiveness of some bluechip stocks.

Analysts at Afrinvest predicts gloomy outlook this week, in the absence of any major market catalyst to stimulate investors’ appetite towards the equities market.

“The local bourse recorded another negative WoW performance as overhanging uncertainties in the global and domestic spaces continue to weaken investors confidence.

” Going into next week, we expect the market to continue to react to events in the crude oil market as well as news surrounding the Coronavirus.”

Codros Capital Limited said:” Looking ahead, we still see sizeable legroom for further downslide in risk assets as investors continue to run towards safety in the face of the fast-spreading coronavirus pandemic and the rout across global markets.”

A breakdown of trading activities last week showed that despite price gains that outweighed losses last week Monday, the Nigerian equities market reopened the week on a downturn, causing the All-Share index (ASI) to plummet further by 0.12 per cent.

The ASI fell by 28.16 points or 0.12 per cent to 22,705.19 points. Accordingly, investors lost N15 billion in value as market capitalisation declined to N11.832 trillion.

The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; Lafarge Africa, Dangote Sugar Refinery, United bank for Africa (UBA), FBN Holdings (FBNH) and Skyway Aviation Handling Company.

Transactions on the equities sector of the Nigerian Stock Exchange (NSE) continued on a downturn on Tuesday, following price losses suffered by most highly capitalised (high cap) stocks, as market capitalisation depreciated further by N64 billion.

At the close of trading , the All-Share Index (ASI) decreased by 162.12 absolute points, representing a dip of 0.71 per cent to close at 22,543.07 points. Similarly, the overall market capitalisation size shed N84 billion to close at N11.748 trillion

The downturn was impacted by losses recorded in most large capitalised stocks, amongst which are; Dangote Cement, CAP Plc, Ardova Plc, NASCON Allied Industries (NASCON) and International Breweries.

Market breadth closed positive, with 27 gainers versus 12 losers. Access Bank, Lafarge Africa and United Capital recorded the highest price gain of 10 per cent, to close at N6.05, N11.00 and N2.42, per share, respectively.

FCMB Group followed with a gain 9.66 per cent to close at N1.59, while Cadbury Nigeria and Caverton Offshore Support Group rose by 9.62 per cent each, to close N5.70 and N2.28, respectively, per share.

Transnational Corporation of Nigeria went up by 9.52 per cent to close at 69 kobo, while NPF Microfinance Bank rose by 9.41 per cent to close at 93 kobo, per share.

On the other hand, Dangote Cement and NASCON led the losers’ chart by 10 per cent each, to close at N137.70 and N8.55, respectively per share. Ardova Plc followed with a decline of 9.80 per cent to close at N13.80 per share while CAP Plc fell by 9.77 per cent to close at N18, per share.

International Breweries went down by 9.57 to close at N5.20, while Lasaco Assurance, Niger Insurance and Courteville Business Solutions shed 9.09 per cent each, to close at 20 kobo each, per share.

Also, the total volume of trades rose by 22.6 per cent to 675.91 million units, valued at N8.06 billion and exchanged in 7,368 deals. Transactions in the shares of Zenith Bank topped the activity chart with 173.94 million shares valued at N2.32 billion.

Guaranty Trust Bank followed with 131.06 million shares worth N2.57 billion, while FBN Holdings traded 119.27 million shares valued at N478.91 million.

Access Bank traded 92.03 million shares valued at N539.13 million, while United Bank for Africa (UBA) transacted 31.47 million shares worth N168.89 million.

Further breakdown of lastweek’s trading showed that a turnover of 2.804 billion shares worth N32.559 billion in was recorded in 31,715 deals by investors on the floor of the exchange.

This amount of shares traded was however, lower than a total of 3.964 billion shares valued at N43.703 billion that was exchanged in 26,054 deals during the preceding week.

The financial services industry (measured by volume) led the activity chart with 2.508 billion shares valued at N25.292 billion traded in 23,243 deals; thus contributing 89.44 per cent to the total equity turnover volume and value respectively.

The conglomerates followed with 60.873 million shares worth N105.948 million in 767 deals. The third place was services industry, with a turnover of 51.296 million shares worth N117.545 million in 350 deals.

Trading in the top three equities namely, Zenith Bank Plc, Guaranty Trust Bank Plc and FBN Holdings Plc (measured by volume) accounted for 1.635 billion shares worth N21.282 billion in 15,631 deals, contributing 58.32 per cent to the total equity turnover volume.

A total of 15,121 units of ETPs, valued at N87.766 million were traded this week in 7 deals, compared with a total of 75,285 units valued at N472.951 million transacted last week in 6 deals. Furthermore, 204 units of Federal Government bonds valued at N19.101 million were traded this week in 8 deals, compared with a total of 62,290 units valued at N71.461 million transacted last week in 18 deals.

35 equities appreciated in price during the week, higher than two equities in the previous week. 27 equities depreciated in price, lower than 64 equities in the previous week. 101 equities remained unchanged, higher than 97 equities recorded in the preceding week.