Investors stake 1.4bn shares worth N9.3bn on bearish trade

Trading on the Nigerian stock Exchange (NSE) continued a downward walk as analyst predicts further lull.

A turnover of 1.350 billion shares worth N9.287 billion in 18,679 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 1.149 billion shares valued at N13.616 billion that exchanged hands last week in 21,868 deals

The local bourse opened the week on a bearish note as the benchmark index declined 0.2 per cent as investors took profit in large-cap stocks.

The market extended decline for the rest of the week, dipping 0.9 per cent and 0.8 per cent from Tuesday to Thursday before closing 1.2 per cent lower on Friday amid poor Q2:2016 numbers as well as influx of profit warnings and notifications of late filings.

Therefore, the NSE ASI slumped 4.0 per cent W-o-W to settle at 27,659.44 points. Market capitalisation pared by N393.6 billion during the week to settle at N9.5 trillion, thus Year to Date (YTD) return worsened to -3.4 per cent.

Activity level in the market was mixed as average volume traded declined 6.2 per cent W-o-W to close at 255.7 million units and value traded rose 24.6 per cent W-o-W to close at N2.1 billion respectively.

Performance by sectors was broadly bearish with all sector indicators closing in the red except Consumer Goods index which appreciated 0.9 per cent W-o-W on the account of gains in NIGERIAN BREWERIES (+3.0 per cent). The Banking index led sector decliners, down 7.3 per cent W-o-W as a result of declines in ETI (-15.4 per cent) and GUARANTY (-7.8 per cent). The Industrial Goods index followed closely, depreciating 7.1 per cent on the back of losses in WAPCO (-10.4 per cent) and Dangote Cement Plc (-5.5 per cent).

Similarly, the Insurance and Oil & Gas indices declined 3.1 per cent and 0.9 per cent respectively against the backdrop of losses in Custodian Insurance Plc at 9.5 per cent, Continental Insurance at 7.8 per cent, Oando Plc at -25.6 per cent, and Eterna Oil Plc at five per cent.