Volatility spikes as NSE indicators shave 1.73%

By Chioma Obinagwam

In consonance with recent the International Monetary Fund(IMF) and the Nigerian Stock Exchange(NSE) that emerging markets are in for a challenging year, the NSE’s key measurement indicators- the NSE All-Share Index and Market Capitalization have recorded 1.73 per cent decline each.

Data gathered from the weekly report of the NSE showed that the All-Share index declined to 23,501.87 basis points(bps)

and N8.08 trillion from the 23,916.15 bps and N8.23 trillion it achieved in the preceding week respectively.

Although the indicators had recorded a marginal increase on the Tuesday trading session of the week under review, it was not enough to forestall an overall decline for the week as indicators quickly returned to the flip side, implying a spike of volatility.

Similarly, all other Indices finished lower during the week, with the exception of the NSE ASeM Index, NSE Insurance Index, and the NSE Oil/Gas Index that appreciated by 0.07 per cent, 0.86 per cent and 4.02 per cent, respectively.

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Meanwhile, a turnover of 5.09 billion shares worth N18.49 billion in 16,711 deals were traded this week by investors

on the floor of the Exchange in contrast to a total of 1.13 billion shares valued at N9.46 billion that exchanged hands last week in 16,680 deals.

The Financial Services Industry (measured by volume) led the activity chart with 4.90 billion shares valued

at N11.40 billion traded in 9,840 deals; thus contributing 96.25 per cent and 61.64 per cent to the total equity turnover volume and value respectively.

The Conglomerates followed with 78.909 million shares worth N211.33

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million in 604 deals. The third place was occupied by the Industrial Goods Industry with a turnover of 38.97 million shares worth N4.19 billion in 1,010 deals.

Trading in the Top Three Equities namely – Wema Bank Plc, FBN Holdings Plc and Zenith International

Bank Plc, and.(measured by volume) accounted for 4.26 billion shares worth N8,57 billion in 3,763

deals, contributing 83.76 per cent and 46.24 per cent to the total equity turnover volume and value respectively.

Also, 30 equities appreciated in price during the week, lower than 38 equities of the

previous week. 40 equities depreciated in price, higher than 29 equties of the

previous week, while 120 equities remained unchanged, lower than 123 equities recorded in the previous week.