BY OLUSHOLA BELLO |
The Nigerian stock market last week was dominated by bearish sentiment amid investors’ apathy to equities, thus making investors to lose N663billion in the out gone Week.
This development followed the hike in yield in the fixed income space.
Capital market analysts said investors tried to re-jig their portfolios to take positions in the primary market auction.
According to them, the result of the NTB auction wherein average stop rates rose by 105 basis points to 2.33 per cent from 1.28 per cent at the last auction lends credence to investors’ downbeat mood during the week.
Consequently, the All-Share Index plunged by 1,269.85 points or 3.04 per cent week-on-week (W-o-W) to 40,439.85 points, the biggest weekly fall in eight years. Also, market capitalisation fell N663 billion to close at N21.156 trillion.
A breakdown across sub-sector gauges tracked indicated that the sub-gauges closed negative. The NSE Banking sub-sector led the laggards as its index fell by 8.76 per cent to 378.10 points. Similarly, the NSE Insurance, NSE Consumer Goods, NSE Oil & Gas and NSE Industrial indices moderated by 6.46 per cent, 0.93 per cent, 1.03 per cent and 5.70 per cent to 216.20 points, 588.40 points, 251.30 points, and 1,922.02 points respectively.
Market breadth for the week was negative as 16 equities appreciated in price, 55 equities depreciated in price, while 91 equities remained unchanged. Mutual Benefits Assurance led the gainers table by 10.53 per cent to close at 42 kobo, per share. Morison Industries followed with a gain of 10 per cent to close at 55 kobo, while McNichols went up by 9.59 per cent to close to 80 kobo, per share.
On the other side, Northern Nigeria Flour Mills (NNFM) led the decliners table by 18.84 per cent to close at N7.02, per share. NEM Insurance followed with a loss of 18 per cent to close at N2.05 and Royal Exchange declined by 16.67 per cent to close at 30 kobo, per share.
Overall, a total turnover of 2.683 billion shares worth N23.662 billion in 27,844 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 2.767 billion shares valued at N29.685 billion that exchanged hands previous week in 31,380 deals.
In the new week, analysts at Cowry Asset Management Limited expected the local equities market to rebound as investors seek for bargains in the market given the lower re-entry prices for stocks with good fundamentals and dividend history ahead of the audited full year 2020 financial results and the announcements of their dividend payment.
Also, Afrinvest Limited said that “In the coming week, we expect earnings result to direct performance and investors to seek bargain hunting opportunities.”