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Negative sentiment persists, index dips further by 1.4%


Nigeria Stock Exchange, Lagos

Negative sentiments continued to pervade activities on the equity sector of the Nigerian Stock Exchange (NSE) as the All-Share Index (ASI) and market capitalisation depreciated by 1.4 per cent to close the week at 26,925.29 points and N13.121 trillion respectively.

Similarly, all other indices finished lower with the exception of NSE Premium Index, which appreciated by 0.64 per cent.

Analysts have argued that factors such as political developments are reasons most foreign investors exit the Nigerian equities market.

However, rather than panic, they have urged investors to take advantage of the bear market, noting that the market has nosedived so much over the past few months and the bearish days would soon be over.


Specifically, analysts at Investdata Consulting Limited said with stock prices bottoming out, the market presents good buying opportunities, while the low prices provide investment opportunities for players in the market, with focus on the fundamentally justified stocks.

“We expect the mixed performance to continue as selloff persists in the absence of positive news and economic stimulus, despite the mixed economic indices and the seeming fair position corporate earnings due to prevailing low market value.

“As investors continue to reshuffle their portfolios in expectation of interim earnings reports of dividend-paying companies.
Also, we see bargain hunters taking advantage of the-low prices stocks, as economic indices seemingly look positive,” they noted.

A breakdown of last week’s transactions showed that the market opened for three days after the observance of the two-day public holiday to mark the Eid-El-Kabir celebrations.

Also a turnover of 726.607 million shares worth N10.459 billion in 12,915 deals was recorded on the floor of the exchange in contrast to a total of 1.081 billion shares valued at N12.014 billion that was exchanged in 16,246 deals during the preceding week.

The financial services industry (measured by volume) led the activity chart with 554.910 million shares valued at N6.499 billion traded in 8,376 deals; thus contributing 76.37 percent to the total equity turnover volume.

The conglomerates industry followed with 76.161 million shares worth N86.854 million in 621 deals.
The third place was consumer goods industry with a turnover of 29.783 million shares worth N754.919 million in 1,855 deals.

Trading in the top three equities namely, Guaranty Trust Bank Plc, Zenith Bank Plc and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 303.101 million shares worth N5.404 billion in 2,842 deals, contributing 41.71 per cent and to the total equity turnover volume.

Also, 4,009 units of Federal Government Bonds valued at N4.111 million were traded last week in 16 deals, compared with 18,100 units valued at N20.049 million transacted last week in eight deals.
About 15 equities appreciated in price during the week, higher than 12 equities in the previous week and 34 equities depreciated in price, lower than 43 equities in the previous week, while 119 equities remained unchanged.


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