Trading activities
at the Nigerian Stock Exchange (NSE) last week witnessed more negative
sentiments as against the mixed outlook recorded in the previous week,
as market recorded 1.72 percent decline during the week. The NSE market
capitalisation in the week depreciated by N146 billion to close at
N8.368 trillion from N8.514 trillion. The All-Share Index also declined
by 1.72 percent to close at 26,181.18 basis points from 26,639.35.
Commenting on last
week’s trading performance, analysts at Proshare Nigeria Limited, an
investment advisory company, said, “Market swings up and down during
the week while bears (downturn) maintained upper hand on the back of
consistent volatility. The intense activities witnessed in major
sectors like banking, building materials, conglomerates, agriculture
and petroleum marketing impacted the negative posture, while slight
buying witnessed in insurance and food/beverages could not salvage the
trend.”
They further
attributed the poor performance to “feeble bargain positions and
inconsistent commitment from investors,” adding that “the trend is
likely to continue if commitment level remains unchanged.” Bismarck
Rewane, managing director of Financial Derivatives Company Limited, a
business consultancy firm, said uncertainty in the market is “driving
investors to the sidelines.” Mr. Rewane said other factors hindering
positive sentiments at the nation’s capital market includes “mixed
performance by listed companies, declining income and savings,
inflationary pressure and weaker purchasing power.”
High volume
However, the total
volume traded during the week closed higher at 1.96 billion units
valued at N18.54 billion compared with the 1.29 billion units valued at
N11.16 billion in the preceding week. The volume transaction in the
week when compared with the previous week data moved up by 51.75
percent as against a decline of 1.25 percent recorded the previous
week. Weekly value also went up by 66.17 percent as against a dip by
8.60 percent recorded the previous week. The banking sector emerged the
most traded sector during the week in terms of volume. The volume
traded in the sector closed at 1.45 billion units valued at N11.58
billion as against the 722.13 million units valued at N6.59 billion
transacted the preceding week. The volume traded in the sector
accounted for 73.69 percent of the entire market. Insurance sector
followed on the most traded sector with 114.04 million units valued at
N77.87 million compared with 175.91 million units valued at N429.84
million recorded the previous week. The number of gainers in the week
closed at 24 stocks compared with the 30 recorded the preceding week.
Beco Petroleum topped the gainers chart for the week with 10.34 percent
appreciations. On the flip side, 63 stocks recorded price decline
compared with the 42 stocks that declined in the previous week.
Afribank topped the losers chart for the week with 17.47 percent
depreciation.
