The bearish trend in the Nigerian equities market extended to the second week as the Nigerian Stock Exchange (NSE) market capitalisation shed N175 billion for last week.
The domestic bourse closed negative, as losses recorded in the first two sessions of the week more than outweighed gains in the latter sessions, resulting in the ASI shedding 489.09 points or 1.13 per cent week-on-week to 42,638.83 points and the Month-to-Date and Year-to-Date returns declined to 3.84 per cent and 11.49 per cent respectively.
Accordingly, investors declined by N175 billion in value as market capitalisation fell to N15.302 trillion. Losses sustained in bellwethers across sectors as Dangote Cement, Nigerian Breweries and Guaranty Trust Bank were the major drags to performance.
Despite the negative performance, sentiment in the market strengthened as reflected in the market breadth with 30 equities appreciated in price during the week, higher than 23 of the previous week, 48 equities depreciated in price, lower than 64 equities of the previous week, while 94 equities remained unchanged higher than 85 equities recorded in the preceding week.
The gainers-chart was topped by Berger Paints with 15 per cent, Beta Glass followed with a gain of 10.2 per cent, while Access Bank appreciated by 5.4 per cent per share. On the other side, Consolidated Hallmark Insurance led the losers’ chart by 22.9 per cent, First Aluminum followed with a decline of 19.6 per cent, while Courtvillie shed 17.4 per cent per share.
Meanwhile, a total turnover of 2.940 billion shares worth N27.924 billion in 28,570 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 4.426 billion shares valued at N24.236 billion that exchanged hands previous week in 29,573 deals.
Outlook For This Week
This week, capital market analysts opined that the direction of the market will be largely determined by the corporate results.
Analysts at Afrinvest Limited said, “Following three successive weeks of decline in the broader index, we anticipate a rebound in the coming week as indicated by the strengthening market breadth. Furthermore, we believe investors’ bargain hunting ahead of the full year earnings season will also drive market performance.”
Analysts at Cordros Capital Limited also said, “Given two consecutive weeks of profit taking, we expect investors to hunt bargains while also taking position ahead of fourth quarter, 2017 corporate earnings releases.”
While analysts at APT Securities and Funds Limited, said the equities market quite stabilised against further sells pressure as value investors appear to be taking advantage of prevailing price levels, saying “we expect the bearish tempo to moderate further on long positioning by value investors in order to dilute exposure.”
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