Equities market bows to profit-taking, loses N7bn WoW

Stories by Kehinde

Akinseinde -Jayeoba | Lagos

EQUITIES trading on the Nigerian Stock Exchange last week recorded marginal loss as activities bowed to profit taking with the All Share Index (ASI) shedding weight from last week gain of 3.76 per cent to -0.61 per cent week on week (WoW).

The equities market trended down all through the week save for the second and third trading sessions with an appreciation of 0.67 per cent and 0.64 per cent respectively.

The bourse closed at 32,515.52 and the market capitalisation closed at 12.13 trillion, having shed seven naira. Against this backdrop, the Month-to-Date and Year-to-Date gains moderated to 6.4 per cent and 3.5 per cent respectively.

Transactions in terms of volume decreased by 47.75 per cent from previous week. Similarly, value experienced 37.28 per cent decline in lower trades as 1.48 billion shares worth N17.65 billion in value were traded in 20,440 deals in the week under review as compared to 2.83 billion shares worth N28.14 billion in 28,733 deals in prior week.

The second trading session recorded the highest appreciation with 0.67 per cent gain while the first trading session recorded the highest loss with a decline of 1.61 per cent. This is not unconnected to profiteering by day traders which was augmented by investors’ pessimistic sentiment towards the rescheduled elections.

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“With election risk now out of the picture, as we anticipate a peaceful exercise, together with the still supportive macroeconomic picture, we guide investors to cherry pick fundamentally sound stocks in a bid to ride the wave of the market rally, post-polls,” analysts at Cordros Securities said.

On sectoral performance during the week, the Financial Services Industry led the activity chart with 1.038 billion shares valued at N10.170 billion traded in 12,232 deals; thus contributing 70.07 per cent and 57.63 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 193.204 million shares worth N306.521 million in 1,330 deals. The third place was Consumer Goods Industry with a turnover of 72.042 million shares worth N4.381 billion in 2,990 deals.

According to data from the NSE, Transnational Corporation of Nigeria Plc, Sterling Bank Plc and Access Bank Plc, were the toast of the week. They accounted for 421.500 million shares worth N1.274 billion in 2,979 deals, contributing 28.46 per cent and 7.22 per cent to the total equity turnover volume and value respectively.