Nigeria Stock Market Sheds N292bn on Bearish Sentiments

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Bearish sentiments ruled the stock market last week despite positive earnings released by some listed companies. The market had appreciated the previous week as political risks abate while some investors took position ahead of expected positive corporate earnings.

Although some results were released, profit taking and sell pressures persisted four out of the five trading days. Consequently, the gains of the previous were eroded leading to the Nigerian Stock Exchange (NSE) All-Share Index shedding 2.4 per cent to be at 31,142.72, while market capitlisation went down by N291.5 billion to close at N11.6 trillion.

On sectoral breakdown, all sector indices, except the NSE Oil & Gas Index, which appreciated by 0.09 per cent, closed in the bears’ territory. The NSE Banking Index recorded the highest decline of 6.13 per cent, followed by the NSE Industrial Goods Index, which fell by 1.12 per cent. The NSE Insurance Index and NSE Consumer Index shed 0.79 per cent and 0.43 per cent respectively.

In spite of the negative performance last week, analysts at Cordros Capital Limited said: “We reiterate our view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for a market recovery in the medium term. However, we guide investors to tread the cautious trading path in the short term.”

Daily Performance

Trading activities for the week started off on a negative note last Monday with the NSE ASI dipping 0.9 per cent due to profit taking in Zenith Bank Plc, Nestle Nigeria Plc and Sterling Bank Plc. The market sustained its bearish run last Tuesday as 36 stocks, including bellwethers recorded price losses while one eight stocks appreciated. Hence, the NSE ASI dipped by 1.02 per cent to close at 31,313.36, while market capitalisation shed N120.6 billion to close at N11.7 trillion.

The bears were dominated by bellwethers such as Dangote Cement Plc, Zenith Bank Plc, Access Bank Plc, GTBank Plc and Double One Plc. However, International Breweries Plc led the losers’ table with 9.9 per cent, trailed by A.G Leventis Nigeria Plc with 8.8 per cent. Jaiz Bank Plc and Linkage Assurance Plc went down by 8.6 per cent and 7.9 per cent respectively.

On the positive side, Law Union and Rock Insurance Plc led the price gainers with 7.6 per cent, trailed by UACN Property Development Company Plc with 7.1 per cent. Lafarge Africa Plc garnered 4.0 per cent. The cement manufacturing firm recently succeeded in raising N89.2 billion via a rights issue.

The market rebounded on Wednesday, paring of losses of the previous sessions. As a result, the NSE ASI appreciated by 0.15 per cent to close at 31,360.28, while market capitalisation added N17.5 billion to be at N11.69 trillion.

Although the market recorded more price losers, gains by Nestle Nigeria Plc, FBN Holdings Plc and Guaranty Trust Bank Plc assisted to halt the negative performance. Thirteen stocks appreciated while 18 depreciated. CAP Plc led the price gainers with 10 per cent, followed by Sterling Bank Plc with 9.7 per cent, while Eterna Plc chalked up 9.0 per cent.

Consolidated Hallmark Insurance Plc closed as the fourth highest price gainer with 7.4 per cent. LASACO Assurance Plc garnered 6.4 per cent, while Nestle Nigeria Plc, Livestock Feeds Plc and Diamond Bank Plc chalked up 4.7 per cent, 3.4 per cent and 2.8 per cent in that order.

Conversely, Regency Alliance Insurance Plc led the price losers with 7.6 per cent, trailed by African Prudential Plc, which shed 7.5 per cent. Prestige Assurance Plc and Dangote Flour Mills Plc depreciated by 7.4 per cent and 5.0 per cent respectively. Guinness Nigeria Plc and UAC of Nigeria Plc lost 3.1 per cent and 2.5 per cent in that order.

The market returned to negative territory on as 20 stocks depreciated dominated by bellwethers, compared with nine that appreciated. Stocks such as Zenith Bank Plc, Nestle Nigeria Plc, Dangote Cement Plc, Access Bank, FBN Holdings Plc and Guaranty Trust Bank Plc.

However, Learn Africa Plc led the price gainers with 9.6 per cent, trailed by Transcorp Hotels Plc with 9.2 per cent. Law Union and Rock Insurance Plc and Eterna Plc shed 8.9 per cent and 8.3 per cent respectively.

Other top price losers include: LASACO Assurance Plc (6.0 per cent); May & Baker Nigeria Plc (2.9 per cent); FCMB Group Plc (2.0 per cent); Jaiz Bank Plc(1.9 per cent).

On positive side, Mcnichols led the price gainers with 9.6 per cent trailed by Dangote Flour Mills Plc with 8.4 per cent. Ikeja Hotel Plc chalked up 7.9 per cent, just as Sterling Bank Plc garnered 5.9 per cent.

Meanwhile, activity level was mixed as volume traded shed 53.1 per cent to 177 million shares while value traded appreciated by 13.2 per cent to N2.6 billion. The top traded stocks by volume were Zenith Bank (80.8 million shares), Sterling Bank Plc (16.8 million) and FCMB Group (12.1 million shares) while Zenith Bank (N1.8 billion), GTBank (N228.2 million) and Nestle (N109.4 million) were the top traded stocks by value.

In terms of sectoral performance, two of five indices tracked trended southwards while one closed flat. The NSE Industrial Goods Index led with a decline of 0.5 per cent, trailed by the NSE Banking Index with 0.4 per cent. On the positive side, the NSE Insurance Index gained 0.5 per cent, while the NSE Oil & Gas Index appreciated by 0.1 per cent.

Market Turnover

Meanwhile, investors traded 1.113 billion shares worth N13.465 billion in 15,036 deals last week compared to total of 1.290 billion shares valued at N13.873 billion that exchanged hands the previous week. However, the Financial Services Industry led the activity chart with 926.286 million shares valued at N9.696 billion traded in 9,906 deals, thus contributing 83.3 per cent and 72.01 per cent to the total equity turnover volume and value respectively. The ICT Industry followed with 73.076 million shares worth N14.664 million in 35 deals. The third place was Consumer Goods Industry with a turnover of 36.749 million shares worth N2.562 billion in 2,301 deals. Trading in the top three equities namely: FBN Holdings Plc, Zenith Bank Plc and Diamond Bank Plc accounted for 551.865 million shares worth N6.602 billion in 3,116 deals, contributing 49.6 per cent and 49.03 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 10,598 units of Exchange Traded Products (ETPs) valued at N1.355 million executed in five deals compared with a total of 2,971 units valued at N766,883.30 that was transacted the preceding week in seven deals

A total of 201 units of Federal Government Bonds valued at N205,083.12 were traded this week in two deals compared with a total of 15,496 units valued at N15.750 million transacted two weeks ago in 12 deals.

Price Gainers and Losers

In line with the bearish performance, only 18 equities appreciated in price during the week, lower than 24 in the previous week, while 45 equities depreciated in price, higher than 37 equities of the previous week. CAP Plc led with 10 per cent, followed by MCNichols Plc with 9.6 per cent, while Royal Exchange Plc chalked up 9.3 per cent. Cadbury Nigeria Plc, UACN Property Development Company Plc and Neimeth International Pharmaceuticals Plc gained 9.0 per cent, 7.1 per cent and 4.6 per cent respectively.

Other top price gainers included: Mutual Benefits Assurance Plc (4.3 per cent); NEM Insurance Plc (4.1 per cent); Consolidated Hallmark Insurance Plc and NASCON Allied Industries Plc (3.5 per cent apiece).

Conversely, African Prudential Plc led the price losers with 20.8 per cent, trailed by FCMB Group Plc with 12.7 per cent, while Zenith Bank Plc shed 11.8 per cent. International Breweries Plc, Wema Bank Plc and Unity Bank Plc dipped by 10.9 per cent; 10.4 per cent and 10 per cent in that order.

Other top price losers were: Jaiz Bank Plc(10 per cent); Learn Africa Plc (9.6 per cent) and Transcorp Hotels Plc (9.2 per cent).

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