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Equities to shed more weight as investors lose N71bn

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By Nkiruka Nnorom

THE equities market has run out of steam after the Central Bank of Nigeria’s policy induced rally with investors losing N71 billion at the end of last week’s market sessions.

NSE: Market capitalisation rebounds by N15bn(Opens in a new browser tab)

This comes as investment analysts said the market may likely shed more weight this week due to negative investors’ sentiment.

With losses recorded in all the five trading sessions of the week, the All-share index shed 0.54 percent to settle at 26,855.52 points from 27,002.15 points.

Similarly, the market capitalisation of all listed equities depreciated to N12.962 trillion from N13.033 trillion in the previous week, representing 0.54 percent decline.

Sectoral analysis showed that significant losses recorded in the industrial goods and banking sectors dampened the market performance, after recording -1.27 percent and -1.16 percent decline respectively.

Also, the insurance sector posted 0.87 percent losses, while and oil and gas sector was down 0.43 percent.

Conversely, gain of 1.71 percent was recorded in the consumer goods sector.

Meanwhile, analysts at Cordros Capital, a Lagos-based investment banking firm, said the market would continue a downtrend this week given the risk off sentiment dominating the domestic market, except if there is a policy-driven catalyst to move the market in the opposite direction.

“Nevertheless, valuations remain attractive, hence we expect pockets of gains over the final month of the year as fund and portfolio managers realign portfolios prior to the start of 2020,” they said.

At the end of the week’s trading, investors bought 952.697 million shares valued at N12.774 billion in 17,279 deals as against 1.161 billion shares valued at N13.174 billion that exchanged hands in 18,142 deals in the previous week.

The financial services sector, measured by volume, led the activity chart with 690.986 million shares valued at N6.787 billion in 10,718 deals; thus contributing 72.53 percent and 53.13 percent to the total equity turnover volume and value respectively.

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The conglomerates sector followed with 101.908 million shares worth N701.283 million in 974 deals, while the consumer goods sector ranked third with a turnover of 57.636 million shares valued at N2.009 billion in 2,095 deals.


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