NIGERIAN equities suffered a major contraction last week as sustained decline in share prices shaved off N154 billion from the market capitalisation. With more than two decliners to every gainer, the stock market traded mostly on the negative side throughout the week.
Average decline for the five-day trading session stood at 1.19 per cent at the weekend, equivalent to net capital depreciation of N154 billion. The decline depressed the average year-to-date return to -15.57 per cent.
With 44 decliners to 18 advancers, most sectoral indices also closed on the negative side. The NSE 30 Index, which tracks the 30 most capitalised companies at the Exchange, declined by 0.88 per cent. The NSE Banking Index dropped by 1.20 per cent. The NSE Consumer Goods Index depreciated by 0.46 per cent while the NSE Industrial Goods Index declined by 1.15 per cent. On the positive side, the NSE Insurance Index and the NSE Oil and Gas Index inched up by 0.03 per cent each.
A year-to-date analysis showed that nearly all investors are carrying losses, underlining the bearishness that had gripped the market since 2018. The NSE 30 Index carried above average year-to-date return of -20.64 per cent. The NSE Consumer Goods Index posted average return of -26.75 per cent. The NSE Oil and Gas Index dipped by 22.56 per cent. The NSE Industrial Goods Index declined by 14.63 per cent. The NSE Banking Index dropped by 11.60 per cent while the NSE Insurance Index slipped by 5.76 per cent.
Total turnover stood at 1.04 billion shares worth N14.63 billion in 14,974 deals last week compared with a total of 952.697 million shares valued at N12.77 billion traded in 17,279 deals in the previous week. The financial services sector remained the most active with a turnover of 556.905 million shares valued at N5.678 billion traded in 8,267 deals, representing 53.33 per cent and 38.81 per cent of the total equity turnover volume and value respectively. The healthcare sector followed with 215.03 million shares worth N122.60 million in 412 deals while the conglomerates sector placed third with a turnover of 89.60 million shares worth N466.29 million in 874 deals.
The trio of Union Diagnostics and Clinical Services Plc, United Bank for Africa Plc and Guaranty Trust Bank Plc were the most active stocks, accounting for 379.095 million shares worth N3.066 billion in 1,704 deals, representing 36.3 per cent and 20.96 per cent of the total equity turnover volume and value respectively.
In the sovereign debt segment, a total of 7,300 units of Federal Government bonds valued at N8.073 million were traded in four deals as against 27,096 units valued at N27.630 million traded in 25 deals penultimate week.
“In the coming week, we expect market performance to remain bearish due to profit-taking activities and the absence of economic buffers,” Afrinvest Securities stated.