Equities market closes negative for third week, as ASI declines 0.69%

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8 years ago

The Nigerian equities market closed negative for the third consecutive week after losing in three out of five sessions. With a bearish start to the week, the All Share Index (ASI) posted back-to-back losses, shedding 0.38 per cent on Monday and 0.84 per cent on Tuesday, with the latter being the largest loss recorded this week. Sentiments remain low, with the ASI reaching a nine-month low on Tuesday.

Contrary to analysts’ speculations, local traders did not ride on the news of the successful Eurobond issue to stir a “noisy rally” on the local bourse. Although investors continued to purchase trusted names in equities, high subscription rates at the recent treasury bills and bond auctions highlight continued strong preference for risk free assets.

Overall, the ASI declined by 0.69 per cent in five-day trade to close at 25,164.91 points. The Consumer Goods index recorded the largest loss with 4.63 per cent loss, owing to selloffs in Nestlé Nigeria Plc (-3.91 per cent) and Guinness Nigeria Plc (-6.23 per cent). The Banking (-0.44 per cent) and Insurance (-1.75 per cent) indices were weighed down by investors liquidating their positions in Zenith Bank Plc (-2.91 per cent), Access Bank Plc (-1.73 per cent), MANSARD (-6.25 per cent) and Custodian Insurance Plc (-2.70 per cent) respectively.

Conversely, the Industrial Goods (+0.73 per cent) and Oil & Gas (+1.63 per cent) indices were bolstered by gains in Dangote Cement Plc (+1.13 per cent), WAPCO (+O.53 per cent), Total Oil Plc (+1.11 per cent) and Seplat Plc (+1.33 per cent).

Market breadth was positive, with 27 gainers led by PZ Plc at 21.29 per cent increase, and 25 losers led by Vitafoam Plc that recorded 16.67 per cent decline at the end of the week.

Total volume traded, however, increased by 1.97 per cent to 1.07 billion shares, with STACO (23.49 per cent), Zenith Bank Plc (12.37 per cent) and Guaranty Trust Bank Plc (8.29 per cent) accounting for 44.16 per cent of total volume.

Total value traded also increased by 7.19 per cent to N8.61 billion with Guaranty Trust Bank Plc (24.92 per cent), Zenith Bank Plc (23.22 per cent) and Nigerian Breweries Plc (10.81 per cent), accounting for 58.94 per cent of total value.