Nigerian stocks recorded a weekly downswing of N464 billion, translating 2.53 per cent of the market capitalisation on The Nigerian Stock Exchange in a week dominated by profit-taking with the uptick in short-term yields at the Nigerian Treasury Bills (NTB) primary auction.
Capital market analysts said the benchmark index closed southwards last week as investors realized profit on blue-chip stocks ahead of Christmas celebration.
They noted that sentiment was bearish throughout the five trading sessions, saying, the sell-off was intense on Thursday, as the index dipped by 1.27 per cent amid investors’ reaction to the spike on the 365-day treasury bills which rose to 3.2 per cent from 1.5 per cent.
Consequently, the All-Share Index (ASI) fell week-on-week by 887.25 points or 2.53 per cent to close at 34,250.74 points. Similarly, market capitalisation fell N464 billion week-on-week (W-o-W) to N17.902 trillion.
The sectorial performance was bearish as all the sub-sectors closed in red; the NSE Banking, NSE Consumer Goods, NSE Insurance, NSE Oil/Gas and the NSE Industrial indices fell by 2.93 per cent, 1.82 per cent, 1.55 per cent, 0.25 per cent and 4.96 per cent to 379.91 points, 154.95 points, 557.45 points, 219.74 points and 1,540.23 points respectively.
Market breadth for the week was negative as 13 equities appreciated in price, 46 equities depreciated in price, while 102 equities remained unchanged. FTN Cocoa Processors led the gainers’ table by 51.72 per cent to close at 44 kobo, per share. Union Diagnostic and Clinical Services followed with a gain of 16.00 per cent to close at 29 kobo, while Okomu Oil went up by 10.00 per cent to close to 88 kobo, per share.
However, Regency Assurance led the decliners table by 16.67 per cent to close at 20 kobo, per share. University Press followed with a loss of 14.29 per cent to close at N1.26 and Neimeth International Pharmaceuticals declined by 12.35 per cent to close at N2.20, per share.
The total turnover of 2.265 billion shares worth N20.990 billion in 23,722 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.675 billion shares valued at N25.425 billion that exchanged hands the previous week in 23,650 deals.
In the new week, analysts at Cowry Asset Management Limited expected the Lagos bourse index to increase as investors begin to position ahead of the usual ‘Santa Claus’ rally.
Cordros Capital Limited said: “We expect the profit-taking and negative reaction to the unanticipated front-end supply from the CBN to be short-lived. Yields in the fixed income market remain relatively unattractive, and we expect this to remain positive for stocks. However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”