Connect with us
Advertise With Us

BUSINESS

Market Dips By 0.44% W-o-W On High Capitalised Equities

Published

on


The Nigerian equities market moderated Week-on-Week (W-o-W) by 0.44 per cent as investors scalped the market for short term profit.

The overall market performance measure, NSE All-Share Index (ASI), depreciated 141.93 points or 0.44 per cent to close at 32,058.28 points, while year-to-date performance weakened to 16.17 per cent loss. In the same vein, market capitalisation reduced by N52 billion to close at N11.704 trillion.

Analysts noted that losses in Dangote Cement, Guaranty Trust Bank and Zenith Bank were the major drags to overall performance in the week.

Analysts at APT Securities and Funds Limited stated that the market experience a quick rush to profit booking by investors on some stocks that rallied in the previous week pushing the Index to the south week on week.

“2.86 billion Eurobond oversubscription is a good pointer to the recovery and growth of the economy as this indicates foreign investors’ confidence in our reforms and initiatives which will have an ample effect on the equities market, ”one of the analysts said.

Sector performance was mixed, the Oil and Gas index depreciated the most, down 1.13 per cent W-o-W due to losses in Seplat Petroleum Development Company and Total Nigeria. The Banking and Insurance indices followed, losing 0.83 per cent and 0.46 per cent W-o-W respectively as sell pressures on Zenith Bank, Guaranty Trust Bank and Linkage Assurance dragged performance. On the flipside, the Industrial Goods index gained by 1.02 per cent, while the Consumer Goods rose by 0.04 per cent.

Market breadth closed negative, with 36 losers and 24 gainers. Unity Bank led the gainers table by 30.99 per cent to close at 93 kobo per share. Flour Mills Nigeria followed with a gain of 11.69 per cent to close at N17.20, while Prestige Assurance rose by 9.80 per cent to close at 56 kobo per share. On the other side, Diamond Bank led the decliners table by 29.69 per cent to close at 90 kobo per share. C & I Leasing followed with a loss of 26.43 per cent to close at N2.06 and Eterna declined by 17.43 per cent to close at N4.50 per share.

Overall, the market saw a total turnover of 1.285 billion shares worth N11.539 billion in 13,245 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.079 billion shares valued at N18.196 billion that exchanged hands previous week in 14,372 deals.

Outlook For This Week

In the new week, analysts expected the NSE ASI to close in red territory amid sell pressure by speculators despite the attractive valuations and dividend yields.

They however, reiterated that buy opportunities would linger, at least in the near term, thus availing value investors’ good bargains.





Advertisement

You must be logged in to post a comment Login

MOST POPULAR