The Nigerian stock market ended last week in red zone, halting a three consecutive week of upbeat performance as investors lost N172 billion worth of investment.
The heavy selloff led the benchmark NSEASI to a weekly loss of 1.77 per cent or 500.18 points to close at 27,835.22 points. Similarly, the market capitalization declined by N172 billion to close the week at N9.561 trillion.
Stock market analysts noted that the broad-based profit-taking witnessed duiring the week was as a result of the macroeconomic landscape which remains strained and unimpressive companies’ earnings.
Sector performance also weakened with all indices trending southwards. The Industrial Goods index declined the most, down by 5.3 per cent week-on-week on account of price depreciation in Wapco and Ashaka Cement. The Banking index followed suit, down by 2.8 per cent on losses in Zenith Bank and Guaranty Trust Bank. Likewise, the Consumer Goods index depreciated by 2.7 per cent due to losses in PZ Industries and Guinness after PZ Industries declared a N1.5 billion loss in its recently published first quarter, 2016 result joining Guinness who submitted a similar result few weeks ago. Similarly, the Oil & Gas and Insurance indices fell 1.16 per cent and 0.08 per cent respectively as losses in Forte Oil, Total, and Continental Reinsurance which dragged both indices.
Stocks Activities Movement For The Week
The All Share Index (ASI) trended southwards on three out of four trading sessions declining on Tuesday by 0.2 per cent, Wednesday by 0.9 per cent and Friday by 0.7 per cent while the market gained 0.08 per cent on Thursday.
Market breadth turned negative, with 21 gainers versus 34 losers compared to 34 gainers against 31 losers the preceding week. Total volume traded fell by 27.35 per cent to 934.90 million shares, worth N6.36 billion and traded in 12,352 deals, compared to the 1.29 billion shares, valued at N9.30 billion that exchanged hands in 15,258 deals previous week.
Banking stocks dominated market activity by volume and value, as Access Bank, Diamond Bank and FCMB traded 150.1 million, 109.2 million and 105.3 million shares collectively accounted for 39.01 per cent of total volume traded during the week, while Guaranty Trust Bank, Zenith Bank and Access Bank transacted shares valued at N1.3 billion, N900.7 million and N817.3 million accounted for 46.84 per cent of total value of transactions for the week.
The best performing stocks for the week were Seven Up, FCMB and Champion Breweries gaining 13.67 per cent, 8.41 per cent and 8.37 per cent, while Lafarge Africa, Wema Bank and Caverton shed 13.87 per cent, 12.50 per cent and 11.84 per cent respectively were the worst performers
Outlook For This week
Analysts expect sentiment in the week may further wane as investors remain cautious ahead of third quarter, 2016 corporate releases.
Analysts at Cordros Capital said that “We expect sentiments to be driven by third quarter, 2016 corporate earnings which are expected to trickle in next week, wherein better-than-expected results will likely enthuse appetite while weak earnings may further dampen appetite.”