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The performance of equities at the Nigerian Stock Exchange (NSE)
during the past week was dominated by negative sentiments as profit takers
maintained sell pressure on the back of gains recorded in the previous week.
While the market only witnessed an upturn on Wednesday, low
bargain activities were recorded in the remaining trading days of the week as
equities shed weight considerably across the board closing all market
indicators in red with aggregate loss of 2.17 per cent.
Analysts at Proshare Nigeria, an investment advisory company,
said the intense selling activities witnessed in the banking, insurance, food
beverages sectors coupled with profit taking on some blue chips impacted
the negative posture recorded in the week to depress year-to-date market
performance to 6.62 per cent from 8.98 per cent position.
The NSE All-Share Index during the week dropped by 2.17 per cent
to close at 26,763.84 basis ponits as against a decline by 1.18 per cent
recorded in the preceding week to close at 27,365.59. Similarly, the market
capitalisation depreciated by N189.45 billion to close at N8.55 trillion as
against depreciation of 104.77billion recorded in the previous week to close at
N8.74 trillion.
Meanwhile, analysts at Renaissance Capital, an investment bank,
said it is expected that the Nigerian market will be “a strong performer” this
year. “We believe the Nigerian market, which lagged other emerging markets in
2009-2010, still has strong catch-up potential. Issues which have dogged the
banking sector can be put behind us after Asset Management Corporation of
Nigeria completes its purchase of non-performing loans,” they said.
They added that equities remain an “attractive asset class to be
in during an economic recovery and Nigeria’s growth trajectory places it in the
recovery state of the business cycle.”
Low turnover
The total volume traded in the week closed at 1.75 billion units
valued at N19.43 billion compared with 2.62 billion units valued at
N24.95billion in the previous week.
The banking sector emerged the most traded sector in the week in
terms of volume. The volume traded in the sector closed at 1.31 billion units
valued at N11.31billion exchanged in 18,750 deals compared with 1.88 billion
units valued at N16.18billion exchanged in 20,403 deals in the preceding week.
The volume traded in the sector accounted for 74.76 per cent of the entire
market. Zenith Bank led the market volume for the week to displace First Bank
shares which topped the transactions volume chart in the previous week.
Insurance sector followed with 88.78 million units valued at
N101.48 million exchanged in 1,326 deals compared with 144.87million units
valued at N167.57 million recorded in the sector the preceding week.
The number of gainers in the week moved down to 38 compared with
the 45 appreciations recorded the previous week. Neimeth International
Pharmaceuticaltopped the gainers chart for the week with 19.83 per cent
appreciations. A total of 46 stocks recorded price decline of different magnitude
in the week compared with the 43 stocks that declined in the previous week.
Niger Insurance topped the losers chart for the week with13.33 per cent
depreciation.
In the mean time, the management of Access Bank, last Friday,
notified the Exchange that it intends to completely divest from its non-banking
subsidiaries namely, United Securities Limited and Access Investments and
Securities Limited, and integrate the operations of its Mortgage Banking
subsidiary, Access Homes and Mortgages Limited, into its Retail Banking
Division.
“The Bank’s decision followed the approval it received from the
Central Bank of Nigeria (CBN), to bring its operations in conformity with the
provisions of CBN’s regulations on the Scope of Banking Activities and
Ancillary Matters No. 3. 2010,” it said.
