NSE All Share Index dips 22.47% year to date

By Chioma Obinagwam

The Nigerian Stock Exchange (NSE) has said that its All-Share index recorded 22.47 per cent loss year to date.

According to information gathered from its weekly reported ended December 23, 2015, the all share index closed at 26,871.24 basis points at the close of the trading session.

An index is a quick measure to judge the overall direction of the market and the scope of its movements; often used as a guide to compare the performance of different companies and industries.

Moreover, the NSE All-share Index is a total market (broad-base) index, reflecting a total picture of the behaviours of the common shares quoted on the NSE.

Reacting to the performance of the NSE, the National President of Constance Shareholders Association of Nigeria, Shehu Mallam attributes the decline to (Foreign Exchange) Forex drought as well as unfavourable government policies.

He said: “Most of the industries are dependent on Forex. The difficulty in accessing Forex is telling on the economy. Nigeria has what it takes to have a robust capital market but people are not having confidence in the capital market.

“There certain implementation that has been stopped likes the capital projects. Taxes will be triple in the next budget,” he continued.

He, however, advised the government should borrow a leaf from countries like China that have succeeded in managing their economy.

“Look at what other countries have done. We need to sit down at the round table to see how we can manage our economy,” he said.

He does not support further devaluation of the naira but suggests that the country should look at how the naira was controlled in the 70s and 80s.

“I’m not in support of devaluation of the currency. The naira has already been devalued.  How much more do they want to devalue the currency,” he added.

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Meanwhile, the Market Capitalisation inched 1.26 per cent up to close the week at N9.24 trillion.

Similarly, all other Indices finished higher during the week, with the exception of NSE Insurance and NSE Consumer Goods Indices that depreciated by 1.02 per cent and 0.44 per cent respectively, while the NSE Alternative Securities Market (ASeM) Index closed flat.

Again, a turnover of 743.117 million shares worth N6.591 billion in 8,325 deals were traded this week by investors on the floor of The Exchange in contrast to a total of 1.457 billion shares valued at N13.803 billion that exchanged hands last week in 13,648 deals.

The Financial Services Industry (measured by volume) led the activity chart with 652.872 million shares valued at N3.583 billion traded in 5,226 deals; thus contributing 87.86 per cent and 54.36 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 30,540 million shares worth N2, 080 billion in 1,332 deals. The third place was occupied by the Conglomerates Industry with a turnover of 29.052 million shares worth N154.209 million in 483 deals.

Trading in the Top Three Equities namely – Wema Bank Plc, Guaranty Trust Bank Plc and FBN Holdings Plc. (measured by volume) accounted for 335.820 million shares worth N2.159 billion in 1,516 deals, contributing 45.19 per cent and 32.76 per cent to the total equity turnover volume and value respectively.

More so, 26 equities appreciated in price during the week, lower than 27 equities of the preceding week.  Nevertheless, 27 equities depreciated in price, lower than 41 equities of the previous week, while 137 equities remained unchanged, higher than 122 equities recorded in the preceding week.