Equities Market Records N610.6bn Highest W/W Loss Since April 2019
The Nigerian equities market last week ended Friday recorded the worst weekly loss since April 2019
The five sessions of the week closed all in red, leading to the five straight weeks that the market closed bearish.
Investors recorded half of the total loss in February, last week, as Equities market capitalisation declined by N610.6 billion in the week, to close at N13, 657,605 trillion, having opened the week at N14, 268,247 trillion.
Notably, the benchmark index declined by 4.3 percent w/w to 26,216.46 points, driven primarily by selloffs in GUARANTY which dipped by -14.8 percent, MTNN by -5.2 percent and NB by -16.4 percent, thus bringing the YTD to return to -4.3 percent for the first time in 2020
The losses came as Nigerian stocks recorded their biggest weekly loss since April 2019 with investors exiting on increasing regulatory risk in the banking sector, a slump in oil prices, and as the first case of the Coronavirus was reported in the country.
For the month of February, equities capitalisation dropped by N1.21 trillion, to close February at N13,657,605 trillion, having opened the month with capitalisation N14,857,086 trillion. The equities market capitalisation was lifted in February with N7, 709,933,990 billion generated through fresh listings of supplementary shares.
The last trading week of February, the five sessions of the week closed all in red, leading to the five straight weeks market closed bearish.
Consequently, the benchmark index declined by 4.3 percent w/w to 26,216.46 points, driven primarily by selloffs in GUARANTY which dipped by -14.8 percent, MTNN by -5.2 percent and NB by -16.4 percent, thus bringing the YTD to return to -4.3 percent for the first time in 2020.
Analysing the performance by sectors, the Banking in the week dipped -11.8 percent, Insurance index by -8.2 percent, Consumer Goods index by -3.8 percent, and Oil & Gas by -2.1 percent. The Industrial Goods rose 1.1 percent and was the sole gainer on interest in BUACEMENT that garnered 1.92 percent growth.
Amidst continued weak market sentiments, we advise investors to trade cautiously, taking positions in fundamentally justified stocks.
Meanwhile, on the last trading session of the week, Friday, February 28, 2020, the Nigerian equities market closed negative Friday as NSE-ASI lost 2.21 percent to close at 26,216.46pts. Similarly, the market lost 4.28 percent WTD.
In Friday’s trade, the market breadth index was strongly negative with 41 losers against 2 gainers.
Cadbury which declined by 10.00 percent was the top loser while Vitafoam with +5.88 percent growth led the gainers’ chart.
GUARANTY with -9.85 per cent dip on its share price was the most actively traded stock on Friday with about 96 million units of shares worth about N2.29billion.
Sector Performance Friday showed the NSE Banking Index with 2.21 percent decline as the highest loser, driven by declined in ETI by -10.00 percent, STANBIC by -9.97 percent GUARANTY by -9.85 percent, NPFMCRFBK by 9.52 percent and FCMB by -8.06 percent.
NSE Consumer Goods Index dropped by 1.91 percent, due to the losses in PZ by -10.00 percent, CADBURY by -10.00 percent and NB by -10.00 percent.
The NSE Oil & Gas Index lost 1.14 percent, due to falling in OANDO by -10.00 percent, ETERNA by -9.55 percent and CALVERTON by -8.15 percent. Also, the NSE Industrial Index dipped by 0.01 percent, due to the sell-off in CUTIX by -5.71 percent.
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