Bear dominance to continue this week
The downward trend in the equities market will continue this week amidst bargain hunting and profit taking activities, capital market operators have said. They noted that the strength of sell pressure over buy pressure will guide the equities index lower in the absence of fundamental drivers to determine investors’ sentiment.
According to United Capital Plc, returns may be capped going forward amid inter-temporal profit taking and bargain hunting by market participants. Meanwhile, the bearish activity in the market last week resulted in loss of N95 billion to the investors as the equities capitalisation, which represents investors’ wealth went down to N12.631 trillion from N12.726 trillion recorded in the previous week. This represents 0.75 per cent decline.
In the same vein, the All Share Index, ASI, depreciated by 0.75 per cent to 36,646.46 points from 36,920.56 points. Transaction was mixed across the sectors as three out of the five sectoral indices recorded decline, while the banking and consumer goods sectors appreciated in price. The oil and gas sector recorded the highest losses at 3.71 per cent impacted by 5.20 per cent and 2.14 per cent losses in Mobil Oil Nigeria Plc and Oando Plc respectively.
Industrial goods sector
The industrial goods sector went down by 3.31 per cent on account of 2.6 per cent loss in Dangote Cement Plc, while the insurance sector depreciated by 1.85 per cent on the back of 7.32 per cent and 5.26 per cent losses in Axamansard Insurance and Custodian and Allied Insurance respectively. On the contrary, the consumer goods sector driven by 7.25 per cent, 4.98 per cent and 1.06 per cent increase in International Breweries Plc, Flour Mills of Nigeria Plc and Nigeria Breweries booked 2.38 per cent increase. The banking sector closed almost flat at 0.31 per cent positive return as advances in Diamond Bank Plc (2.54 per cent) and Access Bank Plc (1.40 per cent) were outweighed by dips in FCMB Holdings Plc (-2.54 per cent) and Union Bank of Nigeria, which fell by 1.67 per cent.
Analysis of the price movement chart showed that there were 40 losers against 32 that recorded price increase. 11 Plc led the laggards, declining by 14.45 per cent to close at N192.55, followed by Conoil Plc which fell by 14.22 per cent to close at N29.07, while Unilever Nigeria Plc declined by 9.23 per cent to close at N41.30. Axamansard Plc and Linkage Assurance Plc closed as the last on the top five losers table, dropping by 7.32 per cent and 6.49 per cent to close at N1.90 and N0.72 respectively. At the end of the week, a total turnover of 1.538 billion shares worth N24.218 billion in 19,187 deals were traded compare to 1.394 billion shares valued at N25.037 billion that exchanged hands in 23,133 deals. The financial services sector, measured by volume, led the activity chart with 1.209 billion shares valued at N14.210 billion traded in 10,692 deals; thus contributing 78.65 per cent and 58.68 per cent to the total equity turnover volume and value respectively. The agriculture industry followed with 109.646 million shares worth N154.438 million in 321 deals, while the consumer goods sector ranked third with a turnover of 83.608 million shares worth N6.247 billion in 3,726 deals. Unity Kapital Assurance Plc, Guaranty Trust Bank Plc and Aiico Insurance Plc, measured by turnover volume, accounted for 579.065 million shares worth N7.900 billion in 1,856deals, contributing 37.66 per cent and 32.62 per centto the total equity turnover volume and value respectively.