NSE continues negative trades, records -1.61% YtD

THERE seems to be no respite at the Nigerian equities market as the local bourse on Friday closed the last trading session of the week negative as benchmark index lost 0.31 per cent to close at 37,625.59 points, bringing week-to-date (WTD) performance down by 1.71 per cent.

Trading on the Nigerian Stock Exchange reversed gains posted in the preceeding week, as the bears resurfaced, causing the Year-to-Date return to close negative, at -1.61 per cent.

Four of the five trading sessions closed in the red, as sell pressures ensued in value stocks. Losses were highly stacked in the Consumer Goods index where 3.49 per cent loss was recorded, while the Oil & Gas stocks shed 2.87 per cent, Industrial Goods depreciated by 2.77 per cent, and Banking indices shares goes 0.07 per cent southwards.

On the flip side, the Insurance indices defying the suspension of trading in six companies, added 0.53 per cent to record sole gainer for the week.

40 stocks recorded losses during the week, led by Forte Oil which made 19.79 per cent loss,  while Mutual benefit advanced by 21.62 per cent to lead the 25 gainers.

During the week under review, eight stocks (African Alliance Insurance Plc, Cornerstone Insurance Plc, R. T. Briscoe Plc, Royal Exchange Plc, STACO Insurance Plc, Standard Alliance Insurance Plc, Universal Insurance Company Plc, Veritas Kapital Assurance Plc) were placed on full suspension, for failing to file relevant accounts.

By the end of trading activities on Friday, market capitalisation has sized down to a close of N13.63 trillion.  A total of 1.84million shares valued at N16.59 billion in 18,940 deals were traded as compared to a total of two million shares valued at N21.58 billion in 18,533 deals in the preceeding week.

NSE All Share Index (ASI) recorded four days loss in the course of the trading as the index opened the trading week bearish with 87bps, it extended its bearish stance into mid -week only to inch by 0.65 per cent north pole in the fourth trading session  and  ended with 31bps south pole.

This indicated deterioration in market performance when compared to prior week.

Market Analyst at APT Securites however advised investors to take advantage of stocks that have shed weight over the week

In the short to medium term, sideways trading is likely to remain the theme in the absence of a near-term positive trigger. However, macroeconomic fundamentals remain strong and supportive of gains in the long term, Analysts at Cordros Capital said.

“Going forward, we expect the market to remain volatile in the absence of positive news flow. With this said, we highlight that the recent sell-off in the equities market presents an entry opportunity for investors with a medium to longer term horizon,” the Investment One report added.