NSE records 3-week loss, sheds 1.3% WoW

The Nigerian Stock Exchange (NSE) extended losses to the third consecutive week as the All Share Index (ASI) declined 1.3 per cent Week-on-Week to close at 25,189.37 points, while Year To Date loss rose to 6.3 per cent.

According to analysts at Afrinvest, market performance for the week was mainly dragged by weaker appetite for Industrial & Consumer Goods and Banking bellwethers.

Activity level moderated during the week as average volume and value traded fell 33.0 per cent and 3.8 per cent W-o-W to 199.5 million units and N1.5 billion respectively.

Performance across sectors was bearish as the Oil & Gas index emerged the sole gainer, up 0.6 per cent, buoyed by price appreciation in Seplat Plc and Forte Oil Plc. The Banking index topped the losers’ chart, down 1.6 per cent as a result of losses in Ecobank TransnationaI Plc, while Dangote Cement Plc dragged the Industrial Goods index to close the week 1.4 per cent lower W-o-W. The Consumer Goods and Insurance indices fell 1.0 per cent and 0.8 per cent W-o-W respectively due to losses in 7UP Plc, Nigerian Breweries Plc, Custodian Insurance Plc and NEM.

In the interim, Afrinvest Analysts expect market performance to be dictated by investors’ reaction to Q1:2017 earnings scorecards which are due this week. “Barring any negative earnings surprises, we expect the broader index to close positive as investors hunt for bargains,” they said.