Equity market loses N2tn over higher bond yields



The negative trading pattern on the Nigerian exchange persisted into another week as investors lost N1.99tn.

The All-Share Index and market capitalisation shed 3.44 per cent week-on-week to 102,088.30 points and N55.86tn, respectively, on the back of weak sentiment, which was spurred by higher yields outlook in the fixed-income market.

The market has also witnessed portfolio rebalancing ahead of expected corporate earnings and the outcome of the Monetary Policy Committee meeting scheduled for Monday and Tuesday.

Across the sectors, performance was largely downbeat as the movement continued across tickers.

The insurance and industrial goods sectors were the least performing indexes as they pared the previous week’s gains by 8.91 per cent and 7.94 per cent, trailing the banking index which closed the week in a weak region by 2.10 per cent due to a sell-off in some bellwether banking stocks.

However, the Consumer goods (2.01 per cent) and the Oil & Gas sectors (0.01 per cent) experienced an upswing as investors showed further interest across those indices.

Trading activities throughout the week were characterised by waning sentiments as a total turnover of 1.377 billion shares worth N31.58bn was traded in 42,040 deals, lower than 1.559 billion shares valued at N36.50bn that exchanged hands in 42,546 deals in the previous week.

Measured by volume, the financial services industry led the activity chart with 960.519 million shares valued at N16.84bn traded in 19,669 deals, contributing 69.77 per cent and 53.33 per cent to the total equity turnover volume and value, respectively. The conglomerate industry followed with 115.241 million shares worth N1.51bn in 2,859 deals.

The third place was the oil and gas industry, with a turnover of 80.866 million shares worth N1.72bn in 2,726 deals.

Trading in the top three equities namely Guaranty Trust Holding Company Plc, FBNHoldings Plc and Transnational Corporation Plc (measured by volume) accounted for 343.584 million shares worth N9.43bn in 5,659 deals, contributing 24.96 per cent and 29.86 per cent to the total equity turnover volume and value, respectively.

Last week, 14 equities appreciated; lower than 35 equities in the prior week and 66 equities dipped; higher than 51 in the previous week.

74 equities remained unchanged, higher than 68 recorded in the previous week.

At the close of the week, Juli Plc, FBN Holdings, Geregu Power and BUA Foods were investors’ toasts amid the cherry-picking activities as their share prices advanced by 59.18 per cent, 10.71 per cent, 9.32 per cent and 6.27 per cent, respectively.

The laggards for the week were Morison Industries Plc, which lost 32.66 per cent to close at N1.67; Consolidated Hallmark Holdings Plc lost 19.35 per cent to close at N1.25 and Sterling Financial Holdings Company Plc lost 18.69 per cent to close at N4.35.

This week, players in the market are expecting more corporate releases, which will likely lead to more portfolio rebalancing.

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