The performance of the Nigerian equities market was largely negative last week as the All Share Index (ASI) declined on all trading sessions. As a result, the benchmark index closed the week in negative for the second consecutive week as investors existed positions in some high capitalised following the release of some unimpressive half year, 2018 results.
Accordingly, the ASI declined 1,053.20 points or 2.89 per cent week-on-week (W-o-W) to close at 35,446.47 points, the largest week on week decline since June 2018, while year-to-date loss fell to a nine-month low of 7.31 per cent. In the same vein, market capitalisation decreased by N381 billion to N12.941 trillion.
Across sectors, performance was equally. The Oil & Gas index led decliners, down 4.97 per cent W-o-W due to losses in Seplat Petroleum Development Company, Total Nigeria and Oando. The Industrial Goods index trailed with a loss of 4.42 per cent on the back of price depreciation in Dangote Cement, Chemical Allied Products (CAP) and Beta Glass. Similarly, sell offs in Cornerstone Insurance and Linkage Assurance pulled the Insurance index lower, down 1.61 per cent. The Banking and Consumer Goods indices declined 1.35 per cent and 0.33 per cent W-o-W respectively as investor exited positions in Guaranty Trust Bank, Zenith Bank, Dangote Sugar and Flour Mills Nigeria.
Overall, the market saw a total turnover of 925.630 million shares worth N8.333 billion in 15,565 deals in contrast to a total of 1.391 billion shares valued at N20.316 billion that exchanged hands previous week in 20,064 deals.
Also, 20 equities appreciated in price during the week, while 47 equities depreciated in price. Neimeth International Pharmaceuticals led the gainers table by 30 per cent to close at 80 kobo per share. Niger Insurance followed with a gain of 30 per cent to close at 39 kobo, while Newrest ASL Nigeria rose by 10 per cent to close at N4.95 per share. On the other side, Secure Electronic Technology led the decliners table by 19.44 per cent to close at 29 kobo per share. Cprnerstone Insurance followed with a loss of 13.79 per cent to close at 25 kobo and Ikeja Hotel declined by 10.86 per cent to close at N2.79 per share.
Outlook For This Week
Analysts at GTI Capital, said that “our expectation for this week is mixed as we expect a moderate slowdown in the bearish outlook as investors in stocks with strong fundamentals are likely to resist the current selloff pressure. However, we expect the currently tensed political climate and a host of other unfavourable conditions to continue to weigh on the market performance.”
Analysts at APT Securities and Funds Limited said that “it will be notable to point out that the equities market is exposed to political risk at this time and it will be advisable to tread with caution while taking advantage of half year fundamentals. We therefore expect the market to be in a quiet mood save for possible long term positioning by value investors.”
While analysts at Afrinvest Limited added that “this week, we expect investors’ bargain hunting activities to buoy market performance albeit marginally after a six-day bearish run.”