NSE: Equity market dips by N84bn

NSE: Equity market dips by N 84bn
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Trading activities on the floor of Nigerian Stock Exchange (NSE) last week close in negative note, shedding N84 billion.
Specifically, market capitalisation of listed equities declined by 0.62 per cent to N13.546 trillion from N13 629 trillion reported the previous week.
The NSE All-Share Index depreciated by N232.82 basis points to 37392.77 points from 37625.59 traded the previous week.
Similarly, all other indices finished lower with the exception of the NSE Oil/ Gas and the NSE Lotus II Indices that appreciated by 0.71 per cent and 0.37 per cent respectively.
NSE Corporate Governance index fell by 20.26 to 1492.30, NSE premium Index down by 4.08 to 2668.22, The NSE Main board Index declined by 17.34 to 1673.45, NSE ASeM index dropped by 12.02 kobo to close at 841.88 points, NSE 30 Index sheds 13.53 to 1691.62, NSE Banking index went down by 9.97 to 465.77, NSE Consumer Goods fell by 3.82 to 891.54 points, NSE Industrial Goods index depreciated by 25.25 to 1927.
75, NSE Pension index 18.09 to 1442.57 points.
The NSE trading result showed that a total turnover of 1.219 billion shares worth N17.333 billion in 17,362 deals in contrast to a total of 1.842 billion shares valued at N16.594 billion that exchanged hands last week in 18,941 deals.
The Financial Services Industry led the activity chart with 842.823 million shares valued at N9.587 billion traded in 9,231 deals, contributing 69.15 per cent and 55.31 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 113.667 million shares worth N4.657 billion in 3,120 deals.
The third place was occupied by Services Industry with a turnover of 105.623 million shares worth N519.813 million in 593 deals.
Trading in the top three equities namely– Access Bank Plc, Zenith International Bank Plc and Nigerian Aviation Handling Company Plc accounted for 497.482 million shares worth N6.619 billion in 2,251 deals, contributing 40.82 per cent and 38.19 per cent to the total equity turnover volume and value respectively.
A review of the transactions for the week showed that 21 equities appreciated in price during the week, against 27 in the previous week.
The result showed that 55 equities depreciated in price, higher than 45 firms traded the previous week while 93 equities remained unchanged lower than ninety-seven 97 equities recorded in the preceding week.
Custodian and Allied Insurance led gainers table, increasing by 17.47 per cent or N0.91 kobo to close at N6.12 kobo, C &I Leasing followed with a gain of 10.22 per cent or N0.23 kobo to close at N2.48 kobo while Forte Oil Plc appreciated by 9.68 per cent or N2.55 kobo to close at N28.90 kobo.
Other firms appreciated in price were II Plc 9.39 per cent, Equity Assurance Plc 9.09 kobo, Regency Alliance Insurance Plc 8.33 per cent, First Aluminium Nigeria Plc 7.89 per cent, Capital Plc 5.71 per cent, Vitafoam Plc Plc 4.84 per cent, Caverton Off Shore Support GRP Plc 4.48 per cent Tanterliser topped losers chart for the week, shedding 25.00 per cent or N0.09 Kongo to close at N0.27 kobo, Mutual Benefits Assurance Plc trailed with a loss of 24.44 per cent or N0.11 kobo to close at N0.34 kobo., DN Tyre and Rubber Plc down by 20.69 percent or N0.06 per cent to close at N0.23 kobo.
Other companies appreciated in price were Multiverse Mining and Exploration Plc 16.67 per cent, Sovereign Trust Insurance Plc 14.81 per cent, the initiates Plc 13.89 percent , Skye Bank Plc 13.70 per cent.
Japaul Oil &Maritime Services Plc 11.11 percent , Linkage Assurance Plc 10.00 and Beta Glass Plc 10.00.
Capital market operators said that the current trading pattern on the Nigerian Stock Exchange is an indication of loss of confidence in the equity market ahead of the 2019 general elections.
The incidents have continued to trigger fear among investors, especially those considered as hot money, joined by some local investors running for safety of their capital.
They explained that with the prevailing market pattern, the expected second quarter earnings season that kicks off this week and June inflation data scheduled for release may not make meaningful impact on the indicators, despite the prevailing low prices.
Operators projected that In the second quarter reports we should start seeing the broader impact of economic slowdown materializing, knowing that the 2018 budget was signed into law barely two weeks ago, at the end of first half of the year.
Specifically, they said people should see slower demand driving slower revenue growth among companies.
According to them since we have already seen low prices, any average earnings are made to be beaten and these earnings will only drive down the Price/Earnings ratio of stocks, making equities even more attractive for the long term.
Also traded during the week were a total of 79,304 units of Exchange Traded Products (ETPs) valued at N1.491 million executed in 18 deals, compared with a total of 25,220 units valued at N454,438.90 that was transacted last week in 4 deals.
A total of 13,517 units of federal government valued at N14.899 million were traded this week in 30 deals, compared with a total of 2,359 units valued at N2.188 million transacted last week in 24 deals

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