Despite the gains recorded in two trading sessions, the equities market closed last week with a 1.7 per cent loss.
Specifically, the Nigerian Stock Exchange’s All-Share Index (ASI) and market capitalisation depreciated by 1.74 per cent to close the week at 38,648.48 basis points and N20.221 trillion respectively.
Similarly, all other indices finished lower with the Consequently, the Year-to-Date (YtD) return dipped further into negative territory, settling at -4.0 per cent, even as the market recorded 6th weekly consecutive loss.
Activity levels were also weak, as volume and value traded declined by 22.6 per cent w/w and 30.7 per cent w/w, respectively.
A total turnover of 1.675 billion shares worth N23.541 billion in 21,732 deals were traded during the week under preview by investors on the floor of the Exchange, in contrast to a total of 2.092 billion shares valued at N29.744 billion that exchanged hands the previous week in 24,238 deals.
The Financial Services Industry led the activity chart with 1.200 billion shares valued at N10.272 billion traded in 12,518 deals; thus contributing 71.64 per cent and 43.64 per cent to the total equity turnover volume and value respectively.
Trading in the top three equities namely United Bank for Africa Plc, FBN Holdings Plc and Zenith Bank Plc accounted for 524.548 million shares worth N5.957 billion in 5,346 deals, contributing 31.32 per cent and 25.30 per cent to the total equity turnover volume and value respectively.
Expert expects a performance that played out last week to persist in the week ahead as investors continue to cherry-pick dividend-paying stocks and, at the same time, exhibit reluctance in leaving gains in the market.
“With uncertainties about the direction of yields in the FI market still bugging investors’ minds, the bears are likely to retain dominance in the market,” Analysts at Cordros said.
Notwithstanding, they advised investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.
Equities market records sixth WoW loss