NSE: Equity market returns to negative trend, sheds N257bn

Trading activities at the Nigerian Stock Exchange (NSE) last week returned to bearish trend, after the nation’s presidential and national Assembly election on Saturday, declining by N257 billion.

Specifically, market capitalisation of listed equities depreciated by 2.12 per cent to N11.869 trillion from N12.125 trillion traded the previous week.

The NSE All Share Index declined by 688.28 basis points to 31827.24 points from 32515.52 reported the preceding week.

Similarly, all other indices finished lower with the exception of the NSE Insurance and NSE Industrial Goods indices which rose by 3.01 per cent and 0.93 per cent respectively while the NSE ASeM index closed flat. 

NSE Corporate Governance Index fell by 58.60 to 1257.77 points, NSE Premium index decreased by 15.02 to 3237.67, the NSE Main Board Index sheds 48.73 to1450.22, NSE 30 index went down by 45.99  to 1427.91points, NSE Banking index dropped by 25.80 to 412.73, NSE AFR Bank Value  Index declined by 72.82 to 1028.01, NSE AFR Div Yield Index dipped by 54.59 to 1422.97 points, NSE Consumer Goods index down by 21.93 to 730.95 points, Oil and Gas Index depreciated by 4.04 to 299.51, Lotus Ii index went down by 23.92 to 2297.38 points, NSE Pension index dropped by 33.43 to 1211.72 points.

The depreciation in the prices of stock last week was in line with the analysts predictions that stock market will continue with down ward trend if the ruling party won the presidential election.

According to the Chief Research Officer, Invest data Consulting Limited, Mr Ambrose Omordion the performance of Capital market in 2019 would depend on the party that wins the presidential election, adding that if the polls favour the incumbent, the tendency is that the market will likely sustain the current downward trend.

In his explanation, Omordion said in the last 20 years, the country has witnessed five elections, noting that immediately after 1998 elections the market recorded gained of 23 per cent in a month; in 2003, it improved by six per cent; in 2007, it recorded marginal growth but in 2011, the stock market maintained the same trend because the economy was under the incumbent government.

Meanwhile, investors traded a total turnover of 1.752 billion shares worth N19.681 billion in 22,319 deals in contrast to a total of 1.481 billion shares valued at N17.647 billion that exchanged hands last week in 20,449 deals.

The Financial Services Industry led the activity chart in volume terms accounting for 1.377 billion shares valued at N11.311 billion traded in 14,180 deals; thus contributing 78.63 per cent and 57.47 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 115.142 million shares worth N168.128 million in 1,126 deals. The third place was Consumer Goods Industry with a turnover of 113.079 million shares worth N6.051 billion in 2,993 deals.

Trading in the top three equities namely, Diamond Bank Plc, Access Bank Plc and Zenith Bank Plc accounted for 594.377 million shares worth N4.757 billion in 4,315 deals, contributing 33.93 per cent and 24.17 per cent to the total equity turnover volume and value respectively.

A review of the investment showed that 26 equities appreciated in price during the week, against 34 recorded in the previous week.

The result also indicated 38 firms depreciated in price, the same with the 38) traded the previous week, while 104 equities remained unchanged higher than 96 equities recorded in the preceding week.

A breakdown of the transactions showed that Cornerstone Insurance led gainers table during the week, appreciating by  19.05 or N0.04 kobo to close at N0.25 kobo, Livestock Feeds Plc followed with a gain of 15.52 per cent or N0.09 kobo to close at N0.67 kobo, Veritas Kapital Assurance Plc gained 14.29 or N0.03 kobo to close at N0.24 kobo. Other companies appreciated in price were C & I Leading were 9.98 per cent, Neimeth International Phamarcueticals Plc 9.84 per cent, A.G.Leventis Nigeria Plc 9.68 per cent, Nearest ASL Nigeria Plc 9.30 per cent, Niger Insurance 9.9 per vent, PZ Cusdons Nigeria Plc 8.91 per cent , John Holt 8.33 per cent.

On the contrary, Transnational Corporation of Nigeria Transcorp) topped losers chart, dropping by 14.48 per cent or N0.21 kobo to close at N1.24 kobo, NPF Micro Finance Bank Plc trailed with a loss of 12.73 per cent or N0.21 kobo to close at N1.44 kobo, Oando Plc fell by 11.54 per cent or N0.75 kobo to close at N5.75 kobo. Other firms recorded price depreciation include Unilever Nigeria Plc 10.0 per cent, Goldlink Insurance Plc 8.33 per cent, Wema Bank Plc 8.33 per cent, Eterna Plc 8.33 per cent, Japaul Oil and Maritime Services Plc 8.00 per cent, Access Bank Plc 7.81 per cent, FBNHoldings 7.19 per cent.

Also traded during the week were a total of 101,254 units of Exchange Traded Products (ETPs) valued at N577,835.06 executed in 19 deals compared with a total of 23,701 units valued at N3.020 million that was transacted last week in 4 deals.

A total of 25,740 units of Federal Government Bonds valued at N26,597 million were traded this week in 22 deals compared with a total of 5,845 units valued at N6.158 million transacted last week in 18 deals.

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