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Investment value on NSE dips by N26bn

Investment value on the Nigerian Stock Exchange, NSE, dipped last week by N26.2 billion as the market capitalization shed 0.39 per cent.

Also, the All-share index dipped by 0.95 per cent, shedding 198.77 basis points in the week under review.

The decline in the market indices, according to financial analysts, was engendered by anxiety over the second quarter Federal Government of Nigeria, FGN, Bonds issuance schedule, awaited by investors.

Investors — mainly institutional investors — are subtly disposing of their equities, ahead of the next auction by the DMO in the bond market, so as to be able to take position and make quick gains.

Another factor which may have led to the dip in the capital market last week, according to the analysts, is the proposed floating of N183.65 billion worth of treasury bills with maturities of 91, 182 and 364 days.

The analysts are, however, of the view that a rebound is expected in the market this week, following the maturity of N131.50 billion and N48.10 billion in treasury bills and Open Market Operation, OMO, respectively. With this, institutional investors would have ample funds to invest in the capital market, which will consequently bring about a rise in the value of shares and the market indices.

In the week under review, the NSE market capitalization dropped to N6.615 trillion from N6.642 trillion at which it opened, while the index closed at 20,743.16 points from 20,941.93 points at which it started the week.

Mobil Oil Nigeria Plc recorded the most share price loss in the week under review, dropping N13.93 to close at N132.07 per share, from N146 per share at which it opened; Guinness Nigeria Plc followed with a loss of N5.05 to close at N225.09 per share and Flour Mills Nigeria Plc shed N3.99 to close at N54.01 per share.

On the contrary, Nestle Nigeria Plc recorded the most share price gain, rising by N16.49 per share to close at N434.99 per share from N418.50 per share at which it opened; CAP Plc followed with a gain of N2.78 to close at N22.80 per share and GlaxoSmithKline Consumer Plc garnered N2.03 to close at N21 per share.

Equity trading appreciated by 37.68 per cent, as investors exchanged 1.582 billion shares valued at N7.859 billion in 14,492 deals, compared to the previous week’s turnover of 1.149 billion shares valued at N7.796 billion in 15,027 deals. The Financial Services sector accounted for 49.43 per cent of the total market turnover, with 782.146 million shares valued at N4.681 billion in 8,318 deals.

The Conglomerates sector followed, accounting for 40.89 per cent of the market turnover, with 647.095 million shares valued at N517.21 million in 400 deals.

The Banking sub-sector of the Financial Services sector was the most active in the sectorial analysis, trading 666.097 million shares valued at N4.525 billion in 7,900 deals. Volume in the Banking sub-sector was largely driven by activity in the shares of Unity Bank Plc, Zenith Bank Plc and Guaranty Trust Bank Plc. Trading in the shares of the three banks accounted for 306.529 million shares, representing 46.02 per cent, 39.19 per cent and 19.37 per cent of the turnover recorded by the sub-sector, sector and total turnover for the week, respectively.

The Diversified Industries sub-sector of the Conglomerates sector, boosted by activity in the shares of Transnational Corporation of Nigeria Plc, followed on the week’s activity chart with a sub-sector turnover of 640.49 million shares valued at N320.878 million traded in 210 deals.


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