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Nigerian Equities Market ends April on bearish note

By BusinessNews Staff on May 13, 2014

The last week in the month of April was not a fantastic one for investors in Nigerian equities as the market struggled, despite strong corporate earnings that were released during the week.

A total of 48 quoted companies released their results in April, but it was not enough to stop the bears who were helped by illiquidity that arose from the hike in cash reserve requirements (CRR) for banks by the Central Bank of Nigeria (CBN).

The market had managed to gain some grounds in the previous week resulting from bargain hunters drive to take advantage of discounted stock prices for possible gains.

But last week was bearish as the Nigerian Stock Exchange (NSE) All-Share Index (ASI) and the market capitalisation depreciated by 0.72 per cent to close on Friday at 38,578.78 and N12.700 trillion respectively.

In the same vein, all sectoral indices depreciated during the week with the exception of the NSE ASeM that closed flat.

Traders are, however, optimistic that the days ahead will be good for investing stressing that the negative sentiment last week was as a result of efforts by anxious investors to take profit. Others stressed that the days ahead will be positive as more investors scramble for undervalued stocks with strong full year results.

“The bear run we saw last week notwithstanding, we expect a positive momentum to come, which will sustained as investors might seek to capitalise on undervalued stocks particularly the banking stocks. Overall, we expect market breath to stay relatively positive within the period,” said a trader.

The market opened for four trading sessions this week as the Federal Government of Nigeria declared Thursday May 1, (May Day) as public holiday to mark Workers’ Day Celebrations.

Summary of Daily Performance
The market had last Monday resumed on a poor note despite the improved result released by Mobil Oil Nigeria Plc. At the close of business for the day, the Exchange’s benchmark index depreciated by 0.77 per cent to close at 38,598.33 points from 38,898.14 recorded the previous Friday.

In the same vein the market capitalisation also decreased to N12.706 trillion from N12.791 trillion on Friday. A total number of 19 stocks gained on the bourse on the day while 34 stocks declined leaving 59 stocks unchanged. Continental Re-insurance Plc emerged the toast of investors as it appreciated by 4.21 per cent to close at N0.99, followed by Mansard Insurance Plc which gained 1.67 per cent to close at N2.43.

The equities market closed southward again on Tuesday as the benchmark index depreciated by 0.31 per cent to close at 38,480.60 points. The depreciation in the Index was as a result of the losses recorded in the share prices of some highly capitalised stocks such as GTBank Plc, PZ Cussons Plc.

Similarly, the market capitalisation recorded a depreciation of 0.31 per cent to close at N12.67 trillion, compared with the loss of 0.67 per cent recorded Monday day to close at N12.71trillion.

At the close of business on Tuesday, the total value of the stocks traded on the floors of the Exchange was N2.83 billion, up by 130.54 per cent from N1.23 billion traded the previous day. The total volume traded was 221.91million in exchanged 4,784 deals.

The stock market had a break from its losing streak on Wednesday as the ASI recorded a marginal gain of 0.01 per cent to close at 38,485.48 points from 38,480.60 attained on Tuesday while market capitalisation also stayed flat at N12.67trillion.

A total number of 22 stocks gained on the bourse on the day while 30 stocks declined leaving 60 stocks unchanged. Custodian insurance Plc emerged the toast of investors as it appreciated by 4.44 per cent to close at N2.35, followed by Dangote Sugar Plc which gained 4.21 per cent to close at N9.90.

As more corporate earnings hit the market, the stock market ended the week on a positive note as the Exchange’s benchmark index increased by 0.24 per cent to close at 38,578.78 points from 38,485.48 points recorded on Wednesday while market capitalisation also increased to N12.70 trillion from N12.67trillion.

20 stocks gained on the bourse last Thursday, while 31 stocks declined, leaving 61 stocks unchanged. Ashaka Cement Plc emerged the toast of investors as it appreciated by 10.18 per cent to close at N18.18, followed by Access Bank Plc which gained 4.88 per cent to close at N8.59.

Market Turnover
Meanwhile, a turnover of 1.099 billion shares worth N13.393 billion in 19,078 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.059 billion shares valued at N27.839 billion that exchanged hands the previous week in 20,413 deals.

The Financial Services Industry (measured by volume) led the activity chart with 680.117 million shares valued at N6.727 billion traded in 11,201 deals; thus contributing 61.87 per cent and 50.23 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with a turnover of 169.045 million shares worth N84.692 million in 62 deals. The third place was occupied by the Services Industry with 99.369 million shares worth N109.674 million in 584 deals.

Trading in the top three equities namely- Mass Telecommunication Innovations Nigeria Plc, FBN Holdings Plc and Zenith International Bank Plc (measured by volume) accounted for 403.832 million shares worth N4.153 billion in 4,462 deals, contributing 36.74 per cent and 31.01 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 23,433 units of Exchange Traded Products (ETPs) valued at N495,614.00 executed in 15 deals compared with a total of 12,184 units of valued at N425,438.88 million transacted last week in 16 deals.
Similarly, 1,900 units of FGN bonds valued at N2.328million were traded this week in 5 deals compared with 1000 units of FGN bonds valued at N1.201 million transacted last week in one deal.

Gainers and Losers
Meanwhile, the price movement chart of the NSE displayed a total of 23 equities that appreciated in prices during the week under review lower than 32 equities of the preceding week. Forty-seven equities depreciated in prices higher than 38 equities of the preceding week, while 129 equities remained unchanged, equal to 129 of the preceding week.

The top gainers in the top 10 category were: Seplat Petroleum Development Company Plc (N32.00), Ashaka Cement Plc (N1.52), Evans Medica Plc (26 kobo), Costain (West Africa) Plc (19 kobo), Custodian and Allied Insurance Plc (22 kobo), Ikeja Hotel Plc (five kobo), Vitafoam Nigeria Plc (30 kobo), Continental Reinsurance Plc (six kobo), CCNN Plc (44 kobo) and Union Dicon Salt Plc (67 kobo).

Conversely, the top 10 losers included: Guinness Nigeria Plc (N19.50), Cadbury Nigeria Plc (N7.68), Presco Plc (N4.00), : Associated Bus Company Plc (11 kobo), RT Briscoe Plc (11 kobo), Airline Services and Logistics Plc (17 kobo), University Press Plc (35 kobo), Honeywell Flour Mills Plc (31 kobo), Sterling Bank Plc (17 kobo) and Skye Bank Plc (26 kobo).

[This Day]

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