Equities Market Suffers 5% Week-On-Week Loss

The Nigerian equities market extended its two-day loss to close Friday June 23, 2017 with a week-on-week negative position of 4.99 per cent due to falling oil prices nearing the budget benchmark of $44.5 per cent

Five days trading witnessed market capitalisation depreciating by N7.465 billion.

Analysts at Trust Yield investment said the “Nigeria’s recent external reserve position is also thought to have spooked some investors. Our reserves have fallen from about $30.9 billion in May 2017 to just above $30.2 billion as at June 21, 2017. A further drop in the external reserve position could trigger another round of depreciation of the naira..

Others say the signing of the budget and expectations of release of funds may have influenced investors to tarry and see where to invest their money in the various capital projects outlined in the budget.

However, a turnover of 2.311 billion shares worth N24.577 billion in 27.836 deals were traded last week by investors in contrast to a total of 2.737 billion shares valued at N32.042 billion that exchanged hands the previous week in 32,217 deals.

The financial services Industry (measured by volume) led the activity chart with 1.783 billion shares valued at N15.865 billion traded in 15,948 deals; thus contributing 11.17 per cent and 64.55 per cent to the total equity turnover volume and value respectively. Conglomerate Industry followed with 239.226 million shares worth N571.910 million in 1,510 deals. The third place was occupied by the Consumer Goods Industry with a turnover of 85.663 million shares worth N4.522 billion in 3,673 deals.

Trading in the top three equities namely – Zenith International Bank and Transnational Incorporation of Nigeria Plc and FBN Holdings Plc (measured by volume) accounted for 665.483 million shares worth N6.695 billion in 5,649 deals, contributing 28.80 per cent and 27.24 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 63,927 units of Exchange Traded Products (ETPs) valued at N841,330.04 executed in 11 deals, compared with a total of 16,300 million units valued at N973,376.00 million transacted in the previous week in three deals.

A total of 2,212 units of Federal Government Bonds valued at N2.098 million were traded in seven deals compared to a total of 12,193 units of Federal Government Bonds valued at N12.440 million transacted last week in 14deals.

The NSE All-Share Index and Market Capitalisation depreciated by 4.99 per cent each to close the week at 32,122.14 and N11.108 trillion respectively.

Similarly, all other Indices finished lower during the week with the exception of NSE Insurance and NSE ASeM Index that appreciated by 0.08 per cent.