The two parameters
for measuring performance at the Nigerian Stock Exchange (NSE), the
market capitalisation and the All-Share Index, fell to three month
figures at the close of trading last week.
The NSE market
capitalisation of the 194 First-Tier equities closed the week at N7.789
trillion from the N8.174 trillion it opened with on the first trading
day of the week, reflecting 4.71 per cent decline or N385 billion
losses. The last time the Exchange recorded market capitalisation in
N7.7 trillion region was December 13, 2010.
The All-Share Index
also declined by 4.71 per cent or 1,206.52 units, to close the week at
24,378.72 basis points from 25,585.24.
Stockbrokers at GTI
Capital, a stockbroking firm, said, “Market barometers lost better
ground to bear (downturn) on the strength of heightened sellers
pressure witnessed during the week,” adding that the indices failed to
sustain the previous weeks’ gains, “despite the fact that volume was
moderate and value of transaction went up” last week.
They said that the
negative trends witnessed were “boosted by losses recorded in some
highly capitalised stocks among which were: Dangote Cement, Zenith
Bank, Dangote Flour, Dangote Sugar, Access Bank, and Lafarge Wapco
Cement.”
Analysts at
Proshare Nigeria Limited, an investment advisory firm, have attributed
the negative sentiment in the market to political risk.
“The sharp change
in sentiment could not be isolated from electioneering process, as more
politicians and interested parties sold-in, to raise funds for myriad
of activities,” they said.
Low turnover
A turnover of 1.1
billion shares worth N9.85 billion was recorded last week, in contrast
to a total of 1.911 billion shares valued at N10.2 billion exchanged
last week.
The Banking
subsector was the most active during the week, in terms of turnover
volume, with 670.65 million shares worth N4.73 billion. Volume in the
Banking subsector was largely driven by activity in the shares of
Guaranty Trust Bank, First Bank, FinBank, and Bank PHB. Trading in the
shares of the four banks accounted for 231.93 million shares,
representing 34.6 per cent of the subsector’s turnover traded during
the week.
The Insurance
subsector, boosted by activity in the shares of AIICO Insurance and
Goldlink Insurance, followed on the week’s activity chart with a
turnover of 116.8 million shares valued at N117.19 million.
A total of 13
stocks appreciated in price during the week, lower than the 40 of the
preceding week. Flour Mills of Nigeria led on the gainers’ table with a
gain of N3.50 to close at N89.00 per share, while GlaxoSmithKline
Consumer followed with a gain of N1.41 to close at N29.65 per share.
On the flip side,
72 stocks depreciated in price during the week, higher than the 47 of
the preceding week. Oando led on the price losers’ table, shedding by
N6.97 to close at N57.00 per share while Lafarge Cement followed with a
loss of N4.60 to close at N37.00 per share.
