Equities investors exchange N10.75bn worth in bearish trade

On the Nigerian Stock Exchange (NSE), the equities market ended the second week in the month of February bearish as the All Share Index (NSE) recorded 1.11 per cent week on week.

After the five-day trading activities, the Industrial Goods index alone escaped the bear pull as it gained 0.78 per cent, while significant losses were recorded in the Consumer Goods (-6.5 per cent) and Insurance (-2.2 per cent) sectors weighed on the market performance, as both indices declined. The Oil and Gas (-0.7 per cent) and Banking (-0.2 per cent) indices also followed suit.

Consequently, the Year-To-Date (YTD) and Month-To-Date (MTD) returns settled at 3.4 per cent and -2.7 per cent, respectively.

The ASI commenced the trading week on a negative note with a loss of 1.05 per cent. The bourse reversed its stance in the second session till mid-week with 0.36 per cent and 0.02 per cent respectively, before turning into the bears’ camp on the fourth trading session (0.05 per cent) which it maintained till the close of the trading week with 0.39 per cent.

A total of 841 million shares valued at N10.75 billion in 15,978 deals were traded this week as compared to a total 1.47 billion shares valued at N20 billion in 23,263 deals last week.

During the week under review, the Financial Services industry (measured by volume) led the activity chart with 624.219 million shares valued at N7.129 billion traded in 9,640 deals; thus contributing 68.43 per cent and 58.79 per cent to the total equity turnover volume and value respectively. The Conglomerates followed with 93.204 million shares worth N452.093 million in 861 deals. The third place was Oil and Gas industry, with a turnover of 59.267 million shares worth N124.638 million in 1,254 deals.

Zenith Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc were the toast of investors as they accounted for 304.089 million shares worth N5.788 billion in 4,290 deals, contributing 33.34 per cent and 47.73 per cent to the total equity turnover volume and value, respectively.

Investors however believed the bearish trend witnessed during the week would persist, as weakening market sentiment and the absence of positive catalysts are expected to pressure market returns.