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NSE ASI Closes In Negative Territory On Resumed Profit Taking Activities

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The Nigerian equities market recorded weekly loss in the first trading week this month on resumed profit taking activities by investors. For the week, the All Share Index depreciated by 525.68 points or two per cent to 25,802.54 points, while year-to-date loss increase to 3.99 per cent.

Also, the market capitalisation declined by N167 billion or 1.84 per cent week-on-week to close at N8.892 trillion. Stock market analysts noted that the equities market experienced quite unimpressive movement last week as anticipated on the back of investors cutting loss which was enhanced by ongoing company earnings release.

Most of the sector indices closed lower except for the Industrial Goods index which posted a positive return of 4.37 per cent. The Banking and Insurance indices posted losses of 2.81 per cent and 2.56 per cent, respectively, following respective selloffs in Zenith Bank, Guaranty Trust Bank, Aiico Insurance and Continental Reinsurance.

The Consumer Goods and Oil & Gas indices also declined by 5.54 per cent and 5.04 per cent respectively, as investors liquidated their holdings in Nestle, Nigerian Breweries, Total and Forte Oil.

Stocks Activities Movement For The Week

The Nigerian equities market opened last week’s trading session in downward swing, posting losses in four out of the five sessions. It recorded its largest loss on Tuesday session, which was driven by investors who liquidated their positions in Forte Oil and Seven Up following disappointing results. The latter reported a loss of N2.9 billion after tax in nine months ended December 2016, while Forte Oil reported a 50 per cent decline in profit after tax to N2.89 billion from N5.79 billion in the corresponding period of 2015.

Market breadth remained negative, with 23 gainers versus 36 losers. Meanwhile, the total volume traded increased by 16.44 per cent to 1.15 billion shares, with FBN Holdings, Med View Airline and Diamond Bank accounted for 29.26 per cent of total volume. Total value traded declined by 57.33 per cent to N8.03 billion with Nigerian Breweries, Guaranty Trust Bank and Zenith Bank accounted for 43.95 per cent of total value.

Outlook For This Week

Analysts are of the view that this week trading will be dictated on financial result especially on expectations of good results.

Analysts at APT Securities and Funds Limited, said, “We foresee more market activity in the coming week as FY; 2016 results unfold. Furthermore, investors are most likely going to take position to profit from fundamentally justified stocks that have shed values.”

While analysts from Cordros Capital Limited noted that, “We expect mixed sentiments in the week, as companies continue to release third quarter, 2016/2017 and full year, 2016 results respectively.”

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