By Peter Egwuatu
EQUITY losses dominated the Nigerian stock market last week, amidst mixed sentiment by investors which led to a bearish run.
Specifically, thirty-one (31) equities depreciated in price, lower than thirty-seven (37) equities of the penultimate week, while one hundred and twenty-two (122) equities remained unchanged lower than one hundred and twenty-seven (127) equities recorded in the preceding week. Twenty-four (24) equities appreciated in price during last week, higher than thirteen (13) equities of the penultimate week.
The Consumer Goods sector was the most hit in the bearish market, dropping by 113 bases points (bps).
Surprising negative market reaction
This was pressured by a surprising negative market reaction to Nigerian Breweries NB’s Plc which declined by 314 bps following its first quarter earnings announcement.
Also, contributing to the decline in the sub sector were 7UP Bottling Company, dropping by 974 bps and Dangote Flour declining by 138 bps. Likewise, the Banking sector dropped by 72 bps following declines in Ecobank Transnational Incorporated , ETI , which nosedived by 379 bps , United Bank for Africa, UBA declined by 38bps and Guaranty Trust Bank shed 36 bps. Meanwhile, the Industrial Goods and Oil & Gas sectors traded flat.
On the other hand, Unilever Nigeria Plc, lead the gainers’ chart rising by 709 bps, followed by Dangote Sugar Plc with 500 bps, and Honeywell Flour Mills, appreciating by 490 bps.
Twenty-four (24) equities appreciated in price during the week, higher than thirteen (13) equities of the previous week. Thirty-one (31) equities depreciated in price, lower than thirty-seven (37) equities of the previous week, while one hundred and twenty-two (122) equities remained unchanged lower than one hundred and twenty-seven (127) equities recorded in the preceding week.
The Nigerian Stock Exchange, NSE All-Share Index and market capitalization depreciated by 1.26 per cent to close the week at 25,189.37 and N8.716 trillion respectively. Similarly, all other Indices finished lower during the week under review with the exception the NSE ASeM, NSE Oil/Gas and the NSE Pension Indices that appreciated by 0.06 per cent, 0.60 per cent and 0.36 per cent respectively.
Meanwhile, a total turnover of 896.748 million shares worth N5.918 billion in 11,185 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.191 billion shares valued at N6.037 billion that exchanged hands penultimate week in 11,820 deals. The Financial Services Industry (measured by volume) led the activity chart with 688.971 million shares valued at N3.637 billion traded in 6,374 deals; thus contributing 76.83 per cent and 61.46 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 105.516 million shares worth N207.182 million in 944 deals. The third place was occupied by Consumer Goods Industry with a turnover of 45.172 million shares worth N1.139 billion in 1,569 deals.
Trading in the top three equities namely – Diamond Bank Plc, Transnational Corporation of Nigeria Plc and Law Union and Rock Ins. Plc (measured by volume) accounted for 335.346 million shares worth N312.960 million in 1,176 deals, contributing 37.42 per cent and 5.29 per cent to the total equity turnover volume and value respectively.
Exchange Traded Products, ETPs:
Also traded during the week were a total of 100 units of Exchange Traded Products (ETPs) valued at N6,799.00 executed in 1 deal compared with a total of 16 units valued at N1,088.00 transacted last week in 1 deals
A total of 1,311 units of Federal Government Bonds valued at N1.346 million were traded this week in 7 deals, compared with a total of 4,800 units valued at N4.892 million transacted last week in 10 deals.
Outlook for the week:
Analysts at Cowry Assets Management have said “Having seen a number of first quarter, Q1’17 earnings last week, we expect more activities in the coming week as the first quarter earnings season opens further. Overall, we foresee continued mixed trading on the bourse at week open.
Stock Watch: STANBIC rose 497 bps Friday, stretching gains in a six sessions, and rally to 12 per cent. The stock now trades at a 52-week high of ¦ 20.74 and has returned 36 per cent, Year to Date YtD.”