Market indices lose five per cent in five days

The crisis of confidence and low liquidity recorded at the Nigerian equities market seem to continue unabated as witnessed in the last few weeks, with volume of activities consistently on the decrease.

At the end of midweek’s trading activities, for example, the composite Nigerian Stock Exchange (NSE) All-Share Index (ASI) became even more bearish due to sell pressure.

According to analysts at Investdata Consulting Limited, there were sales volumes of 99 per cent and buy position of just one per cent of the total daily transactions’ volume.

They said the development signals real sell off, at a time the market had suffered three back to back loses, indicating a fundamental problem of lack of fund.

Specifically at the close of transactions last week, the NSE ASI and market capitalisation depreciated by 4.6 per cent each to close the week at 29,616.38 points and N11.124 trillion respectively. Also, all other indices finished lower.

For instance, the NSE Corporate Governance fell by 72.77 to 1154.95; NSE Premium Index, down by 74.05 to 2,129.71; the NSE Main Board dropped by 74.84 basis points to 1,345.22 points; NSE ASeM shed 0.68 point to 806.54 points; and NSE 30 fell by 68.58 points to 1324.07 points.

Others are NSE Banking Index, which went down by 24.61 basis points to 379.35 points; NSE Insurance lost 4.86 to 121.12 points; NSE AFR Bank, down by 75.60 to 943.73 points; NSE AFR DivbYield shed 73.69 points to 1,336.64 points; and NSE Consumer Goods, which decreased by 55 basis points to 656.29, among others.

Consequently, a turnover of 3.544 billion shares worth N20.264 billion was recorded in 19,130 deals by investors, in contrast with a total of 2.629 billion shares valued at N12.794 billion that changed hands in 15,558 deals during the preceding week.

Further analysis of last week’s transactions showed that the financial services industry (measured by volume) led the activity chart with 3.06 billion shares valued at N14.469 billion, traded in 11,738 deals; thus contributing 86.35 per cent to the total equity turnover volume.

The ICT industry followed with 253.633 million shares worth N53.707 million in 277 deals, while the third place was occupied by consumer goods industry with a turnover of 65.499 million shares worth N4.356 billion in 2,732 deals.

Trading in the top three Equities – Wema Bank Plc, Sterling Bank Plc and Chams Plc (measured by volume) accounted for 2.104 billion shares worth N2.026 billion in 965 deals, contributing 59.38 per cent and 10.00 per cent to the total equity turnover volume and value respectively.

On the prices movement chart, 14 equities appreciated in price during the week, lower than twenty-one 21 in the previous week. 55 equities depreciated in price, higher than 36 equities of the previous week, while 98 equities remained unchanged, lower than 111 equities recorded in the preceding week.

No Exchange Traded Products (ETPs) was transacted during the week compared with a total of 85,775 units valued at N1.187 million that was transacted last week in 22 deals.

A total of 18,042 units of Federal Government Bonds valued at N19.685 million was traded in the week in 24 deals, compared with a total of 3,453 units valued at N3.565 million transacted last week in 24 deals.