By OLUSHOLA BELLO, Lagos –
The Nigerian equities market closed negative for the second consecutive week, as losses prevailed across most sectors.
During the week, despite the impressive half year, results released by UBA and Access Bank, the All Share Index ended the week in the red, shed 274.10 points or 0.74 per cent to close at 36,646.46 points, reducing the year-to-date performance to 36.36 per cent. Similarly, market capitalisation fell by N95 billion to close at N12.631 trillion.
The negative close last week was against the backdrop of sell-offs in large cap stocks including Dangote Cement, Wapco, Zenith Bank, Total and Unilever Nigeria.
Performance across sectors was broadly bearish, with the Oil & Gas declined the most with a loss of 3.71 per cent on the back of sell-offs in Mobil, Conoil and Total. The Industrial Goods index followed with a decline of 3.31 per cent due to profit-taking in Dangote Cement and Wapco. Likewise, the Insurance index closed the week 1.85 per cent lower on account of price depreciations in Mansard Insurance and Linkage Assurance. On the gainers chart, the Consumer Goods index led with a 2.38 per cent week-on-week return owing to buy interest in Nigerian Breweries, Dangote Flour and Dangote Sugar, while the Banking index closed 0.31 per cent higher due to upticks in Guaranty Trust Bank, UBA and Access Bank.
Outlook For This Week
This week, capital market analysts expected a mix of profit taking and bargain hunting activities. Analysts at Cordros Capital Limited said, “Following two weeks of consecutive sell-offs, we believe the market presents opportunity for bargain hunting. Broadly, we expect some volatility in the market as witnessed last week as activities in the interim will be driven by developments in the local economy. Overall, we look for a mixed performance in the coming week, albeit with a bullish bias.”