After hitting an all-time high the previous week, the Nigerian equities market ended the month of November on a poor note as the bears dominated activities on four trading days of the week.
As a result, the week-to-date (WTD) return declined by 0.83 per cent, while the month-to-date (MTD) return dipped to 3.45 per cent.
The market lost about N20 billion in value on daily basis bringing the week’s decline to N104 billion to settle at N12.449 trillion. Sustained profit-taking by anxious investors was largely blamed for the poor showing.
The bulls had dominated the equities market throughout the previous week as the benchmark index closed positive climbing 0.32 per cent on the last trading day to settle at 39,246.05 points (the level it reached on July 13, 2013).
The week under review commenced with bearish movements as investors took profit on some stocks which rallied in the past week. At the close of business last Monday, the benchmark index saw moderate decline of 0.06 per cent, to settle at 39,222.02 points with WAPCO Plc and Transcorp Plc, dampening the ASI by 100 points.
In the same vein, the market capitalisation shed N8 billion to reach N12.545 trillion.
Also, activity level slumped in volume and value terms with the market recording 545.2 million units valued at N3.97 billion were consummated in 5,929 deals. Thus indicating 53.1 per cent drop in volume of trades and 49.8 per cent in value. With the highest volume and value of trades Transcorp topped the activity level with 170.97 million units worth N926.80 billion exchanged.
The market continued on that note on Tuesday with the benchmark index retreating 246.86 points (0.63 per cent) to close 38,975.16 points as profit-taking continued to drag the market to a bearish mood for the second trading day. Volume of trade consummated on the floor declined 17.7 per cent while value of stocks exchanged increased 21.0 per cent as 448.86 million valued at N4.808 billion were transacted at the end of the trading day. Weighing down the index were WAPCO Plc, FBN Holdings Plc and Transcorp Plc, which shaved 141 points off the index.
On the day, all sector performance indices closed red with the oil & gas sector delivering a 0.82 per cent decline. For the Financial sector, both banking and insurance components also declined closely 0.47 per cent and 0.45 per cent each. Industrials also saw marginal declines of 0.16 per cent as well as the Consumer Goods which shed 0.12 per cent.
The market witnessed a small rebound on Wednesday as the main index grew 0.09 per cent or 36.1 points to close the day on a humble note at 39,011.31 points. The bourse opened on levels lower than previous close and trended downwards to mark a low of 38,809.39 points after which it peaked towards the close of trade. Market Capitalisation settled at N12.477 trillion.
The market returned southward on Thursday as the index closed 38,928.65 points, slipping 0.21 per cent paring the slight gain witnessed previous day. Transcorp Plc continued to drag the index further helped by Guaranty Trust Bank Plc and Forte Oil Plc with an aggregate of 84 points negative contribution. Reduced activity level captured by the 30.1 per cent and 45.8 per cent decline in volume and value respectively. 252 million units were traded at the close of the day valued at N2.58 billion in 4,717 deals.
The stock market closed the week in red as the benchmark index slid by 0.02 per cent on the last trading day to settle at 38,920.85. Also the market capitalisation trimmed N2.50 billion to settle at N12.449 trillion.
Transcorp (aided by Dangote Sugar Refinery Plc and Ashaka Cement Plc) continued to trigger the market’s decline causing the index to plummet 54.93 points. Flour Mills Nigeria Plc and Forte Oil Plc however supported the index by 49.83 points.
The bearish run impacted the market negatively as major indicators closed firmer, led by the twin market gauge. Analysis of trading numbers showed that the exchange’s All-Share Index declined by 0.83 per cent to close on Friday at 38,920.85. Similarly, the market capitalisation depreciated by 0.83 per cent to close at N12.449 trillion.
Five of the indices appreciated during the week with the exception of three: The NSE Consumer Goods, NSE Banking, NSE Insurance, NSE Lotus II, NSE ASeM indices rose by 1.20 per cent, 0.78 per cent, 1.10 per cent, 0.28 per cent, and 0.76 per cent respectively. However, NSE 30, NSE Oil/Gas and Industrial Goods indices slipped by 0.12 per cent, 5.52 per cent and 4.16 per cent respectively.
A further analysis of trading activity for the week showed that a turnover of 2.168 billion shares worth N24.442 billion in 26,443 deals were traded in the week under review by investors on the floor of the exchange in contrast to a total of 3.699 billion shares valued at N29.084 billion that exchanged hands the previous week in 28,386 deals.
The financial services industry (measured by volume) led the activity chart with 1.203 billion shares valued at N9.133 billion traded in 12,226 deals; thus contributing 55.48 per cent and 37.37 per cent to the total equity turnover volume and value respectively.
The conglomerates industry followed with a turnover of 505.330 million shares worth N2.478 billion in 2,628 deals; contributing 23.31 per cent and 10.14 per cent to the total equity turnover volume and value respectively. The third place was occupied by the oil and gas industry with 196.409 million shares worth N2.372 billion in 3,762 deals.
Trading in the top three equities namely Transnational Corporation of Nigeria Plc, Unity Bank Plc and WAPIC Insurance Plc (measured by volume) accounted for 888.952 million shares worth N2.526 billion in 3,119 deals, contributing 41.00 per cent and 10.33 per cent to the total equity turnover volume and value respectively.
Also traded during the week were a total of 1,800 units of NewGold Exchange Traded Funds (ETFs) valued at N3.445 million executed in 6 deals compared with a total of 750 units valued at N1.477 million transacted last week in 4 deals.
Similarly, 19,520 units of FGN bonds valued at N21.374 million were this week traded in 5 deals compared with a total of 13,207 units valued at N14.349 million transacted last week in four deals.
Gainers and Losers
Meanwhile, the price movement chart of the NSE displayed a total of 34 equities that appreciated in prices during the week lower than 59 equities of the preceding week. Forty eight equities depreciated in prices last week higher than 24 equities of the preceding week, while 116 equities remained unchanged higher than 115 equities of the preceding week.
The top 10 gainers were: Flour Mills Nigeria Plc (N5.15), Cadbury Nigeria Plc (N4.85), Jos International Breweries Plc (N1.07), Costain (WA) Plc (27 kobo), Prestige Assurance Plc (10 kobo), Union Dicon Salt Plc (69 kobo), McNichols Plc (15 kobo), Neimeth Pharmaceuticals Plc (8 lobo), ETI Plc (98 kobo) and Champion Breweries Plc (80 kobo).
On the other hand, the top 10 losers included: Lafarge WAPCO Plc (N10.80), Transcorp Plc (N2.31), Oando Plc (N1.81), Unity Bank Plc (14 kobo), Livestock Feeds Plc (96 kobo), NEM Insurance Plc (8 kobo), Courtville Business Solutions Plc (5 kobo), Royal Exchange Plc (4 kobo), Wema bank Plc and Trans-Nationwide Express Plc (9 kobo each).