With the increasing number of Covid-19 cases and the weak economic conditions, the last week in June will be characterised by weak markets sentiment that will force investors to strengthen position on prized stocks.
Activities on the bourse for the week ended Friday, 19 June show continued prevalence of weak sentiments in the domestic equities market, as the All-Share Index plummeted by 1.4 percent to 24,826.75 points – the second weekly decline in three weeks, as investors dumped DANGCEM which dipped by 6.5 percent, MTNN with -1.6 percent decline and NB that posted -9.5 percent dip. Consequently, the YTD and MTD losses increased to -1.7 percent and -7.5 percent respectively.
The five trading sessions of the week recorded four sessions of bearish trades ( Monday, Tuesday, Thursday, and Friday), while Wednesday was the only day the bears held sway during the week. Thus reflecting huge losses that needed to be reversed, earning opportunity for investors.
Sectors analysis for the week shows that significant losses recorded in the Oil & Gas INDEX declined by 4.9 percent, NSE Insurance INDEX BY -3.1 percent, and Banking index by -3.1 percent, which weighed on the market performance. The Industrial Goods index rose by 2.2 percent and Consumer Goods index by 1.8 percent growth, representing the sole gainers for the week.
Cordros Research noted “’ in our opinion, risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to trade cautiously and seek trading opportunities in only fundamentally justified stocks”
During the week, a total of 121,769 units of Exchange Traded Products (ETPs) valued at N675.284 million were traded in 22 deals, compared with a total of 767,768 units valued at N5.607 billion transacted the prior week in 17 deals.
An additional volume of 900,000 units was added to the NEWGOLD ETF on Monday 15 June.
The secondary bond market recorded a total of 11,920 units of bonds valued at N12.265 million were traded during the week in 18 deals compared with a total of 1,002 units valued at N971,140.42 transacted in the prior week in 9 deals.
Also, a total volume of 100,000,000 units of 12.50%, Fixed Rate Series 1 Senior Unsecured Bonds Due 2025 (12.50% DCM APR 2025) Under the N300 Billion Debt Issuance Program were admitted to trading at The Exchange on Thursday 11 June
HONEYWELL FLOUR MILL led the gainers’ chart for the week with N0.16 or 17.39 percent, to end the week at N1.08 per share, followed by NESTLE Nigeria with N99.50 or 10.00 percent growth, closing the week at N1094.50 per share, while CUTIX closed as the third-best gainer for the week with N0.16 or 10.00 percent growth to end the week at N1.76 per share.
RED STAR EXPRESS closed as the fourth-best gainer at N3.60 per share, the following growth by N0.30 or 9.09 percent, CORNERSTONE Insurance closed as the fifth top gainer with N0.04 or 7.84 percent growth, closing the trade at N0.55 per share.
SKYWAY AVIATION Handling Company, as the sixth on the top gainers’ chart for the week, appreciated by N0.20 or 7.33 percent, ending the week at N2.93 per share, while CADBURY ended the week as the 7th on the gainers’ chart with N0.50 or 6.67 percent growth, closing the trade at N8.00 per share.
BUA CEMENT ended the week as the 8th on the top gainers’ chart appreciating by N2.50 or 6.02 percent, closing the week at N44.00 per share, LEARN AFRICA, as the 9th top gainer of the week rose by N0.07 or 5.47 percent, to end the week at N1.35 per share, while REGENCY ASSURANCE closed the top ten gainers chart for the week at N0.22 per share, following share price appreciation by N0.01 OR 4.76 percent.
Top losers
NEIMETH INTERNATIONAL PHARMACEUTICALS emerged the worst decliner of the week with N1.03 or 40.08 percent loss to close the week at N1.54 per share, followed by NPFMFB which lost N0.47 or 25.13 percent, to end the week at N1.40 per share, while PRESTIIGE Assurance, as the third-highest loser dipped by N0.13 or 18.57 percent, to end the week at N0.57 per share.
AIICO INSURANCE closed the week as the fourth-highest loser with N0.18 or 15.25 percent dip, to end the week at N1.00 per share, UACN Property Development Company, closed as the fifth on the top losers’ chart with N0.13 or 12.50 percent, closing the trade at N0.91 per share. STERLING Bank, as the sixth on the top losers’ chart for the week, depreciated by N0.15 or 11.11 percent, ending the week at N1.20 per share, while CALVERTON, the seventh on the top losers chat for the week, lost N0.25 or 11.11 percent, to end the week at N2.00 per share.
NIGERIAN AVIATION HANDLING COMPANY (NAHCO) closed as the 8th on the week’s top losers chart with N0.30 or 10.34 percent dip, to close at N2.60 per share, UNIVERSITY PRESS closed at N1.08, having declined by N0.12 or 10.00 percent, while SEPLAT PETROLEUM DEVELOPMENT COMPANY (SEPLAT) closed the top ten losers chart for the week with N47.60 or 9.99 percent dip for the week, to close at N428.80 per share.
The Local Bourse closed the week on a negative note as its All Share Index (ASI) dwindled by 0.43% amid sustained profit taking activity even as the number of losers (21) outweighed the number of gainers (13) at the close of trade. Hence, the year to date loss of the NSE ASI rose to 7.50%.
Given the selling pressure on large-cap stocks such as DANGCEM, OKOMO OIL, ACCESS, and GUINNESS, their respective share prices on Friday dipped by 6.47%, 4.48%, 0.74%, and 2.86%. Similarly, the NSE Banking, NSE Insurance, NSE Consumer Goods, and NSE Oil/Gas indices moderated by 0.22%, 0.14%, 0.21%, and 0.05% respectively.
Meanwhile, market activity was weak as the volume and value of stocks traded dipped by 3.32% and 11.95% to 0.16 billion units and N1.9 billion respectively. Elsewhere, NIBOR declined for most tenor buckets amid renewed liquidity ease;
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