Nigeria: No Respite As Market Records Third Consecutive Weekly Decline

Nigeria: No Respite As Market Records Third Consecutive Weekly Decline

The equities market recorded its third consecutive decline last week as investors confidence remained weak.

Out of the four trading sessions, four were bearish with Dangote Cement Plc moving the market to its largest loss in 52 weeks last Thursday.

Although the market rebounded last Friday, with a gain of 1.29 per cent, that was not enough to take the bourse out of its negative territory.

Consequently, the Nigerian Stock Exchange All-Share Index (NSE ASI) fell 0.51 per cent to close the week at 35,266.29. Market capitalisation shed N741billion to close lower at N12.871 trillion.

Accordingly, month-to-date and year-to-date (YtD) decline increased to 4.73 per cent and 7.78 per cent, respectively. All sectoral indices closed negative, save for the Industrial Goods (+1.29%) index. Market breadth for the week remained negative, with 52 losers and 16 gainers.

Analysts at Meristem Securities Limited said investors have held their bearish stance towards the market, as reflected by the negative YtD return.

"Sell-offs on four of five trading days kept the market in the negative territory this week. Investors have remained sceptical about the Nigerian equities market ahead of the upcoming elections and we have seen significant capital flight from the equities market," they said.

Daily Performance

The year-to-date decline of the index weakened to worsened to 7.4 per cent last Monday, when tradingresumed. Specifically, the NSE ASI closed lower at 35,399.28, while market capitalisation shed N17 billion to end at N12.9 trillion. The bears were in total control as 26 stocks lost value compared with only 14 that added value.

Although, highly capitalised counters such as United Bank for Africa Plc, Guinness Nigeria Plc, GTBank Plc and Zenith Bank Plc, were largely responsible for negative performance of the market, Mutual Benefits Assurance Plc led the gainers with 9.1 per cent apiece.

Livestock Feeds Plc, Wema Bank Plc and NSL Technology shed 8.7 per cent, 7.3 per cent, 6.9 per cent and 6.9 per cent respectively.On the positive side, Eterna Plc led the price gainers with 9.9 per cent, trailed by UAC of Nigeria Plc with 7.6 per cent. Courtville Business Solutions Plc and CavertonOffshore gained 5.0 per cent and 4.7 per cent respectively.International Breweries Plc and Double One Plc garnered 4.5 per centand 2.2 per cent in that order.According to market analysts, the mood in the Nigerian equities market during the week was still downbeat as weak investor appetite still characterised the market."We noticed that most of the counters across […]

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