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Mixed reactions to trail equity market as investors lose N61bn in 5 days

By Peter Egwuatu
MIXED reactions by investors are expected to typify the equity market on the Nigerian Stock Exchange, NSE, this week amid renewed profit taking activities which led to investors losing N61 billion in five trading days last week.

Stocks

The NSE market capitalisation which represents investors worth in the market, fell to N13.322 trillion last weekend from N13.383 trillion it opened during the review week.

Analysts have said that this week investors’ sentiment would be mixed as half year, HI’18 corporate earnings continue to have mixed reactions.

Mr. Victor Chiazor, analyst at Capital Bancorp Plc said: “2018 half year results have so far not been as impressive as we would have expected, though a few companies have managed to surprise investors with significantly improved numbers and as you know, the market will react positively to good numbers and also react with a sell down when their earnings fail to impress.”

In their reactions, analysts at Vetiva Capital said: “With large-cap stocks constantly under pressure throughout the week, and a slowdown in earnings releases, we foresee a tepid start to the week as market sentiment remains soft.”

Commenting on stock to watch, Vetiva said “Wema Bank has lost 10 percent in the last eight sessions. The stock is still outperforming other banking stocks, returning 32.69 percent, Year-to-Date (YtD) compared to the -2.89 percent YtD average and is the third best performing banking stock.”

Meanwhile, a review of market performance last week showed that the NSE All Share Index, ASI, another stock market gauge drew to a -52 bases points, bps, close last Friday and a -37 bps Week-on-Week, WoW, close as losses were observed in blue chips.

A total turnover of 1.391 billion shares worth N20.316 billion were traded last week by investors in 20,064 deals as against 1.417 billion shares valued at N16.739 billion that exchanged hands penultimate week in 19,832 deals.

The Financial Services Industry (measured by volume) led the activity chart with 824.153 million shares valued at N9.274 billion traded in 11,620 deals; thus contributing 59.23 percent and 45.65 percent to the total equity turnover volume and value respectively. The Services Industry followed with 308.871 million shares worth N1.256 billion in 610 deals. The third place was occupied by Consumer Goods Industry with a turnover of 86.151 million shares worth N8.073 billion in 3,103 deals.

Trading in the top three equities namely – Nigerian Aviation Handling Co. Plc, United Bank for Africa Plc and Zenith International Bank Plc (measured by volume) accounted for 460.997 million shares worth N5.273 billion in 2,513 deals, contributing 33.13 percent and 25.95 percent to the total equity turnover volume and value respectively


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