Persistent free fall in share prices drags index further by 2.41%
The sustained bearish sentiment, leading to selloffs in the most
capitalized stocks, continued to take tolls on the benchmark All-Share
Index (ASI) of the Nigerian Stock Exchange (NSE) last week.
During the period, many stocks were forced to the new lower level, as
the bear dominance increased since the first week in May, as ASI
depreciated by 2.41 percent to close at 28,566.9 points. Similarly, all
other indices finished lower with the exception of the NSE Banking Index
that rose by 0.78 percent, while the NSE ASeM Index closed flat.
Analysts linked the unprecedented lull in the nation’s stock market
to the absence of fiscal stimulus that would complement efforts by the
regulators to restore the market to sustainable recovery.
The Managing Director of Investdata Consulting Limited, Ambrose
Omodion said: “The leadership style of this government and its
non-implementation of the 2019 budget that was passed into law since
May, continues to send wrong signals to investors, feedback of which we
are seeing in the stock market today.
“Nonetheless, the ongoing pullback has created opportunities for
accumulation, but we advise investors and traders to be cautious. They
should target fundamentally sound stocks with a history consistent
dividend payout whose business model supports growth.”
Further breakdown of last week’s trading showed that a total turnover
of 988.491 million shares worth N13.839 billion was recorded in 16,414
deals by investors on the floor of the exchange in contrast to a total
of 1.025 billion shares valued at N9.911 billion that exchanged hands in
19,375 deals during the preceding week.
The financial services industry (measured by volume) led the activity
chart with 769.350 million shares valued at N7.238 billion traded in
8,530 deals; thus contributing 77.83% to the total equity turnover
The conglomerate’s Industry followed with 55.223 million shares worth
N92.483 million in 719 deals. The third place was the ICT Industry with
a turnover of 42.080 million shares worth N4.144 billon in 839 deals.
Trading in the top three equities namely, Zenith Bank Plc, FBN Holdings
Plc and Wapic Insurance Plc (measured by volume) accounted for 348.839
million shares worth N3.520 billion in 2,703 deals, contributing 35.29
percent to the total equity turnover volume.
A total of 1,115 units valued at N165,837 were traded this week in
three deals compared with a total of 12,375 units valued at N6.223
million that was transacted last week in eight deals. A total of 756
units of Federal Government Bonds valued at N730,454.35 were traded this
week in seven deals compared with a total of 1.007 million units valued
at N1.024 billion transacted last week in 14 deals.
Also, 18 equities appreciated in price during the week, lower than 21
in the previous week. 39 equities depreciated in price, lower than 44
equities in the previous week, while 111 equities remained unchanged,
higher than 103 equities recorded in the preceding week.
Source: The Guardian, July 15, 2019