The Nigerian Stock Exchange (NSE) All-Share Index halted a four-week positive trend to close at 32,122.14 points, driving YtD performance lower to 19.53 per cent.
The market capitalisation also depreciated by 4.99 per cent or N584 billion to close the week at N11.108 trillion.
Market experts attributed the week’s performance to broad profit taking across sector indices.
A breakdown of the performance of the indices showed the Banking and Industrial Goods recorded the largest losses of -6.78 per cent and -5.36 per cent respectively. This was consequent on profit taking in Zenith Bank and Access Bank that closed the week 11.18 and 11.40 per cent lower respectively. The Industrial Index, however, fell on account of Dangote Cement’s 4.59 per cent loss and Wapco that fell 9.16 per cent during the week in review.
In the same manner, losses recorded in the shares of AXA Mansard (-15.77 per cent w/w), NB (-7.38 per cent w/w), and OANDO (-13.40 per cent w/w) ensured that the Insurance, Consumer Goods and Oil & Gas indices, shed 5.36 per cent, 3.95 per cent and 0.80 per cent, respectively.
Also identified as a reason for the downturn of the market this week was the plunge in crude oil prices to seven-month lows, with West Texas Intermediate (WTI) dropping below $44 per barrel and Brent dipping below $46.
Another damper on the market was the Etisalat Nigeria’s process to convert a syndicated loan by 13 Nigerian banks to equity and mounting concerns over most stocks trading above consensus’ fair value, driving sell-off across the banking sector.
The negative close was also notwithstanding the news of a hold by MSCI on the reclassification of Nigeria index to a Standalone status.
Market breadth thus remained negative, with 23 gainers (38 last week), topped by Neimeth Pharmaceuticals that grew 44.12 per cent during the week. The week also ended with 52 losers led by Transcorp that dropped 23.12 per cent against 42 equities that declined last week. While 98 equities remained unchanged higher than 93 equities recorded in the preceding week.
Total volume traded declined by 15.58 per cent to 2.3 billion shares compared to 2.7 billion last week, with Zenith Bank, Transcorp, and FBN Holdings accounting for 28.80 per cent of the market volume.
The value of trades also fell by 23.30 percent to N24.58 billion compared to N32.04 billion traded in previous week, with Zenith Bank, Guaranty, and NB accounting for 49.53 percent of total value.
Also traded during the week were a total of 63,927 units of Exchange Traded Products (ETPs) valued at N841,330.04 executed in 11 deals compared with a total of 16,300 units valued at N973,376.00 transacted last week in 3 deals
A total of 2,212 units of Federal Government Bonds valued at N2.098 million were traded this week in 7 deals, compared with a total of 12,193 units valued at N12.440 million transacted last week in 14 deals.
Meanwhile, all Exchange’s facilities nationwide will be closed for business on Monday and Tuesday to re-open for normal business on Wednesday, June 28, 2017, as the Federal Government of Nigeria has declared Monday and Tuesday, June 26 and 27, 2017, as Public Holidays to mark Eid-el-fitr celebration.
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