All-Share Index Falls Below 27,000 Threshold as Market Sustains Losses

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The Nigerian Stock Exchange (NSE) All-Share Index (ASE) fell below the 27,000 threshold to 26,925.29 last week following the free-fall the stock market has been experiencing.

The continued bear run pushed the NSE ASI down by 1.40 per cent, while market capitalisation shed N185.9 billion to close at N13.121 trillion last week in three days, due to a two-day holiday declared by the federal government of Nigeria to mark the Eid-El-Kabir celebrations.

Performance across sectors was bearish led by the NSE Consumer Goods Index that fell 6.6 per cent, trailed by the NSE Industrial Goods Index with 4.2 per cent. The NSE Oil & Gas Index went down by 1.9 per cent, just as the NSE Banking Indices closed 1.1 per cent lower.

One major event in the market last week was the visit of Governor of Ekiti State, Dr. Kayode Fayemi to the NSE. Welcoming, the governor, the Chief Executive Officer of NSE, Mr. Oscar Onyema, said the exchange was ready to partner the state to have access to capital to build a sustainable economy for the state.

“Your strategies towards revitalising the agricultural, manufacturing, mining, trade and tourism sectors, which together account for 75 per cent of the state’s gross domestic product (GDP) are also commendable.

“For instance, you have increased the proportion of capital spending in the 2019 budget to 44 per cent from 31 per cent in 2018; and channelled budgetary resources towards pro-growth projects in these sectors such as the: development of a land bank for the state; establishment of one-stop investment promotion centre and enterprise zone industrial clusters; widespread road constructions, electrification and ICT infrastructure; as well as rehabilitation of Fountain Hotels and commencement of an Ekiti State Airport project,” Onyema said.

He noted that at the NSE, “we recognise that to build a sustainable economy for the estimated 3.5 million citizens of Ekiti State, supported by vibrant sectors, both state-owned and private sector enterprises will require access to right-sized capital.”

“We have been longstanding partners with Ekiti State in accessing such capital. Your Excellency would recall that during your previous term in office between 2010 and 2014, The exchange supported the issuance and listing of the N20 billion Fixed Rate Infrastructure Development Bond, which financed a number of projects including the Ikogosi warm spring redevelopment, the Ekiti Water Works construction, as well as the refinancing of high-interest borrowings by the state.

“In that time frame, the Ekiti economy expanded by over 63 per cent in nominal terms to become a trillion naira economy, according to data from the National Bureau of Statistics. The state also recorded a 15 per cent improvement in terms of the enabling business environment assessments by the World Bank.

“Today, the exchange is even more strategically positioned, having transformed into a multi-asset class exchange hub, to further support the developmental goals of Ekiti State in unlocking significant investment value through the listing of public utilities and state-owned enterprises, issuance of subnational bonds, as well as promoting the knowledge economy within the state in terms of public sector capacity building through our technology based learning management system,” the NSE CEO said.

Onyema explained that as the exchange builds awareness and attracts local and international investors, they would partner with the State and its agencies to achieve the benefits of privatisation of its state owned enterprises and other initiatives of both entities across various sectors.

“It is my hope that this interactive session of Facts Behind the State Economy will create the strategic in-roads for: innovative capital market solutions to the developmental needs of the state and benefit of the good people of Ekiti State; as well as collaboration and support between Ekiti State, the Nigerian Stock Exchange and the capital market community,” he added.

Market turnover
Meanwhile, a total turnover of 726.607 million shares worth N10.459 billion in were traded in 12,915 deals last week by investors on the floor of the Exchange in contrast to a total of 1.081 billion shares valued at N12.014 billion that exchanged hands in 16,246 deals the previous week.

The Financial Services industry led the activity chart with 554.910 million shares valued at N6.499 billion traded in 8,376 deals, thus contributing 76.4 per cent and 62.14 per cent to the total equity turnover volume and value respectively. The Conglomerates industry followed with 76.161 million shares worth N86.854 million in 621 deals. The third place was Consumer Goods industry with a turnover of 29.783 million shares worth N754.919 million in 1,855 deals. Trading in the top three equities namely, Guaranty Trust Bank Plc, Zenith Bank Plc and Transnational Corporation of Nigeria Plc accounted for 303.101 million shares worth N5.404 billion in 2,842 deals, contributing 41.7 per cent and 51.7 per cent to the total equity turnover volume and value respectively.

Also, a total of 1,292 units valued at N15,283.55 were traded last week in seven deals compared with a total of 36,011 units valued at N495,359.07 transacted the previous week in 13 deals.
A total of 4,009 units of Federal Government Bonds valued at N4.111 million were traded in 16 deals compared with a total of 18,100 units valued at N20.049 million transacted two weeks ago week in eight deals.

Top price gainers and losers
The price movement chart showed 15 stocks that appreciated in price during the week, higher than 12 equities in the previous week, while 34equities depreciated in price, lower than 43 equities in the previous week.

B.O.C. Gases Plc led the price gainers with 9.8 per cent trailed by Union Diagnostic & Clinical Services Plc with 9.1 per cent. Unity Bank Plc and Livestock Feeds Plc chalked up 7.8 per cent and 7.3 per cent in that order. Transcorp Plc garnered 4.6 per cent, while Continental Reinsurance Plc gained 4.3 per cent.

Union Bank of Nigeria Plc appreciated by 3.7 per cent. Union Bank of Nigeria Plc recently reported gross earnings of N76 billion for the half year ended June 30, 2019, showing a decline of nine per cent from N83.3 billion posted in the corresponding period of 2018. Net interest income after impairment charges rose three per cent from N29.7 billion to N30.5 billion, while non- interest income went down 12 per cent to N18.7 billion, compared with 21.1 billion in 2018. The bank ended the H1 with profit before tax (PBT)of N18.7 billion, up four per cent from N11.7 billion in 2018.

Cement Company of Northern Nigeria Plc rose by 3.5 per cent, just as MTN Nigeria Communications Plc and Zenith Bank Plc chalked up 3.1 per cent and 1.5 per cent respectively.

Conversely, Rak Unity Petroleum Plc led the losers with 25 per cent, trailed by UAC of Nigeria Plc shed 18.2 per cent, just as Ecobank Transnational Incorporated shed 17.2 per cent. Law Union & Rock Insurance Plc went down by 15.3 per cent, while Stanbic IBTC Holdings Plc lost 13.3 per cent.

Unilever Nigeria Plc and Chams Plc shed 12.8 per cent and 11.5 per cent in that order, just as WAPIC Insurance Plc and NASCON Allied Industries Plc closed 10.2 per cent and 10 per cent lower respectively.

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