NSE ends week in red as indicators shave 5.63%

By Chioma Obinagwam

The Nigerian Stock Exchange(NSE) All-Share Index and Market Capitalization, major measurement indicators of the NSE, depreciated by 5.63 per cent each to close the week at 27,028.39 basis points and N9.30 trillion respectively.

Similarly, all other Indices finished lower during the week, with the exception of the NSE Industrial Goods Index that rose by a marginal 0.45 per cent to close at 2,176.44.

There are also fears from some quarters that the equities market may weaken further as the Federal Government(FG) warms up to raise funds from the bond market to enable it offset its 2016 budget deficit.

Moreover, there was no transaction recorded on bonds in the week under review, although a total of 75,750 units of
Federal Government Bonds valued at N128.722 million were traded in the preceding week in 1 deal.

However, analysts at Foresight Securities and Investment limited have expressed optimism that the bond market will soon become a beehive of activities as soon as the FG begins to shop for N984 billion in the bond market.

Meanwhile, a turnover of 899.60 million shares worth N7.67 billion in 14,164 deals were traded the week under review by investors in contrast to a total of 2.97 billion shares valued at N9.36 billion that exchanged hands in the erstwhile week in 7,174 deals.

The Financial Services Industry (measured by volume) led the activity chart with 764.79 million shares valued at N4.868 billion traded in 8,904 deals; thus contributing 85.01 per cent and 63.34 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 40.16 million shares worth N100.47 million in 626 deals.

More so, the third place was occupied by the Consumer Goods Industry with a turnover of 40.01 million shares worth N1.71 billion in 2,116 deals.

Trading in the Top Three Equities namely – Access Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc.(measured by volume) accounted for 339.027 million shares worth N2.800 billion in 3,116 deals, contributing 37.69 per cent and 36.51 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 12,016 units of Exchange Traded Products (ETPs) valued at N2.05 million executed in 25 deals, compared with a total of 60,171 units valued at N484,396.36 transacted last week in 20 deals.

Furthermore, 17 equities appreciated in price during the week, lower than 42 equities of the previous week.

On the flip side, 50 equities depreciated in price, higher than 22 equities of the
previous week, while 123 equities remained unchanged, lower than
126 equities recorded in the previous week.