The weak performance of the Nigerian equities market was sustained all through last week as investor sentiments remained negative. The performance was largely in line with the trend across emerging market equity indices as foreign investors continue to exit these markets.
Last week, the bearish run in the market extended into the 11th consecutive trading session, the longest losing streak since July 2015 as the All Share Index fell below the 40,000 points mark for first time since January and fell to a six-month low of 36,816.29 points.
Accordingly, the NSE-ASI declined by 2,507.33 or 6.38 per cent to close at 36,816.29 points, while Year-to-Date performance turned negative with a loss of 3.73 per cent. Similarly, market capitalisation fell by N908 billion to close at N13.336 trillion.
Sector performance was largely negative last week as all indices closed in the red Week-on-Week. The Industrial (-10.3 per cent) and Consumer (-8.5 per cent) Goods indices declined the most by 10.30 per cent and 8.54 per cent respectively, following selloffs in Dangote Cement, Wapco, Nestle and Nigerian Breweries.
The Banking index followed suit, with a loss of 4.49 per cent, dragged by price depreciation in Guaranty Trust Bank and Zenith Bank. Similarly, the Oil and Gas Index fell 2.31 per cent on the back of losses in Forte Oil and Oando, while the Insurance index marginally slid 0.11 per cent.
For the week 25 equities appreciated in price, while 48 equities depreciated in price. Meanwhile, there was a significant spike in volume and value of trades for the week by 96.91 per cent and 429.16 per cent to 2.70 billion units and NGN84.78 billion, respectively. That was on the back of an off-market trade, wherein 1.14 million units of Stanbic IBTC crossed at N53.75 in eight deals to Stanbic Africa Holdings Limited, a wholly owned subsidiary of Standard Bank Group Limited and parent company of Stanbic IBTC Holdings Plc.
Outlook For This Week
Analysts at Afrinvest Limited said that “as sentiment on emerging market equities remains weak globally we believe market performance will remain pressured. On the flipside, technical analysis shows that the market is ripe for an upturn in performance given the current 14-day Relative Strength Index which is at 10.8 points (oversold region).
“Furthermore, the successive weeks of losses in the market have created bargain opportunities for investors to take advantage of and we believe this will drive market performance this week.”
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