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Stock market investors lose N78bn in bearish run

Analysts predict market rebound this week
Recommend buy for CAP, Dangote Cement, Ecobank

By Peter Egwuatu

FOLLOWING the four days bear run on the Nigerian Stock Exchange, NSE, last week, investors lost N78 billion as market capitalisation declined to N13.154 trillion from N13.232 trillion penultimate week.

Similarly, another benchmark indicator, the NSE All Share Index, was down 0.7 per cent Week-on-Week, W-o-W, to settle at 29,851.29 points from 30,046.70 points it closed penultimate week, while the Year-to-Date, YtD return worsened to -5.0 percent.

Analysts explained that the sustained bearish trend was as a result of sustained profit taking activities.

Rebound of the market

But analysts foresee a rebound of the market as investors may soon take advantage of the lower prices especially for the highly capitalised equities.

STOCK

Analysts at Cowry Asset Management Limited, recommended a ‘buy’ for CAP Plc, Dangote Cement and Ecobank, while forecasting an Earnings Per Share, EPS, of N2.85 per share, N57.22 per share and N4.70 per share respectively.

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However, activity level on the Exchange last week strengthened as average volume and value traded gained 499.3 per cent and 35.9 percent to settle at 189.9million units and N4.2billion respectively.

The most traded stocks by volume were Wema Bank (5.1billion units), Zenith Bank (450.6million units) and Guaranty Trust Bank, GTBank    (74.0million units) while Zenith Bank (N9.0 billion), Wema Bank (N3.2billion) and GTBank    (N2.3billion) were the major gainers by value.

 

Sector performance was mixed as three of the six indices on the Exchange trended northward. The Insurance index led gainers, up 8.7 per cent as investors bought into Link Assurance rising by +7.5 per cent, NEM Insurance up (+33.3 per cent) and Law Union increased by (+8.7 per cent) while the Banking and Oil & Gas indices also gained 2.6 per cent and 0.7 percent respectively on the back of gains in Access Bank which went up (+7.8 per cent ), Forte Oil (+6.1 per cent ) and Mobil Oil (+4.0 per cent ).

Sector performance

Conversely, the Afrinvest-ICT index led the laggards, declining by 4.1 percent due to losses in MTN declining by (-4.1 per cent) and CHAMS (-13.9 per cent). The Consumer and Industrial Goods indices also shed 1.6 per cent and 1.5 percent respectively due to weakness in International Breweries which went down by (-10.0 per cent ), OKOMU Oil (-10.0 per cent ) and CAP (-11.6 per cent).

Reacting to the market outlook, analysts at Cowry Asset said: “In the new week, (this week) we expect the local equities market to rebound marginally as investors take advantage of the low prices even as investors continue to await the President’s cabinet announcements.”

Commenting as well, analysts at Afrinvest Research said: “In the coming week,(this week) we expect that investors will continue to take position in fundamentally sound stocks as we approach the half year, H1, 2019 earnings season.”

 

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