Equities investors trade N17.9bn shares on negative sentiment

THIS week, the bears dominated the domestic equities market, amidst continued risk-off sentiments and the absence of positive market catalysts. Consequently, after four trading days of losses, the benchmark index dipped by 1.32 per cent week-on-week to 27,388.62 points.

Analyses of the performance by sectors indicated that only the industrial goods sector escaped the bear pull as it appreciated marginally by 1 per cent as losses from consumer goods sector dampened the market performance, after the index plummeted by 6.8 per cent, just as the banking sector lost 2.6 per cent, insurance sector depreciated by 2.1 per cent and oil and gas by 1.28 per cent.

Over the week under review, a total turnover of 1.499 billion shares worth N17.907 billion in 18,515 deals were traded by investors on the floor of the Exchange, in contrast to a total of 912.175 million shares valued at N12.126 billion that exchanged hands the previous week in 17,083 deals.

The financial services industry (measured by volume) led the activity chart with 1.226 billion shares valued at N12.974 billion traded in 11,741 deals; thus contributing 81.79 per cent and 72.45 per cent to the total equity turnover volume and value respectively. The consumer goods followed with 83.882 million shares worth N3.090 billion in 1,937 deals. The third place was conglomerates industry, with a turnover of 49.719 million shares worth N104.199 million in 517 deals.

Trading in the top three equities namely, Zenith Bank Plc, Sovereign Trust Insurance Plc, and Guaranty Trust Bank Plc. (measured by volume) accounted for 636.624 million shares worth N10.123 billion in 4,539 deals, contributing 42.47 per cent and 56.53 per cent to the total equity turnover volume and value respectively.

However, amidst continued weak market sentiments, stock analysts at Cordros advised investors to trade cautiously and take positions in fundamentally justified stocks.