By UDO ONYEKA
Trading of equities on the Nigerian Stock Exchange, NSE was generally bearish on the first week of 2019 as the market posted a weak performance following sell-offs in many companies stocks.
According to analysts the declaration of Tuesday 1st January 2019 as a Public Holiday by the Federal Government of Nigeria to mark the New Year celebrations may have also contributed to the poor outing.
The NSE All-Share Index depreciated by 1.28 per cent while Market Capitalization appreciated by 0.78 per cent to close the week at 30,638.90 and N11.426 trillion respectively.
All other indices finished lower with the exception of the NSE Oil and Gas Index that rose by 2.91 per cent.
Twenty-two equities appreciated in price during the week, lower than 52 in the last week of 2018. 45 equities depreciated in price, higher than 18 of the last week in 2018, while 97 equities remained unchanged higher than 94 equities recorded in the same period under review.
A total turnover of 1.647 billion shares worth N8.413 billion in 14,773 deals were traded this first week of 2019 by investors on the floor of the Exchange in contrast to a total of 3.129 billion shares valued at N14.348 billion that exchanged hands last week of 2018 in 10,394 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.154 billion shares valued at N5.742 billion traded in 9,174 deals; thus contributing 70.08 per cent and 68.25 per cent to the total equity turnover volume and value respectively.
The Healthcare Industry followed with 271.277 million shares worth N82.647 million in 219 deals. The third place was Services Industry with a turnover of 91.734 million shares worth N 208.562 million in 232 deals.
Trading in the Top Three Equities namely, Diamond Bank Plc, Union Diagnostic & Clinical Services Plc and NEM Insurance Plc (measured by volume) accounted for 816.016 million shares worth N1.305 billion in 1,615 deals, contributing 49.54 per cent and 15.51 per cent to the total equity turnover volume and value respectively.
According to Cowry Daily Market Insight of Cowry Asset Management Limited, last Friday Nigerian Equities Market Falls by 43 bps on Banking Stocks; NIBOR Rises on N425.66 billion OMO Sales…
“The Nigerian equities market fell 43 bps amid increased sell pressure which produced 29 losers against only 11 gainers. NSE Banking Index declined the most by 0.93 per cent following major losses on shares of Zenith, Access and Diamond.
“Similarly, the NSE Oil/Gas Index and NSE Industrial Index shed 0.76 per cent and 0.50 per cent amid losses on shares of Total and CAP respectively. Consequently, the year-to-date loss of the market worsened to 2.52 per cent.
“In the money market, NIBOR increased for all placement tenors on renewed liquidity strain following OMO sales worth N425.66 billion; while NITTY moved in mixed directions.
“In the bond market, FGN bond prices appreciated for most maturities amid sustained bargain hunting in both the local FGN OTC market and the international bond market for Eurobonds”, the report said.