The equity market squeezed out a marginal gain last week amidst two consecutive sessions of profit-taking pressure, as the NSE All-Share Index appreciated by 0.72 per cent to close the week at 35,137.99 and N18.365 trillion.
However, all other indices finished lower except NSE Main Board, NSE Insurance, NSE ASeM and NSE Oil/Gas, which appreciated by 2.61 per cent, 1.56 per cent.
Analysts argued that prevailing negative sentiment on NSE for two days is an indication that funds left the market due to continued profit-taking.
They urged the government to initiate policies capable of providing more liquidity and a stable exchange rate to stimulate the market positively.
InvestData Consulting Limited said: “The prevailing negative sentiment on the Nigerian Stock Exchange (NSE) for two days, so far, is to be expected, even as market fundamentals remain strong.
“There is a sign that the market is waiting for another trigger in the form of information or statements such as a policy adjustment by the Central Bank of Nigeria (CBN) capable of providing more liquidity and stable exchange rate to further impact the market positively.
“We expect a mixed trend to continue amid slight improvement in Treasury bills rates, profit-taking, portfolio rebalancing and repositioning in the new month, just as the market awaits inflow of funds from alternative investment and adjustment in CBN policies.”
Analysts at Codros capital said: “In the coming week, we expect the minimal activity in the T-bills secondary market to persist as participants await the issuance of the CBN’s special bills.”
Last week, profit-taking by investors halted six days of a bullish run to commence a downturn on Monday, causing market capitalisation to depreciate by N27 billion.
The All-Share Index (ASI) fell by 51.30 absolute points or 0.17 per cent to close at 30,479.39 points. Similarly, the overall market capitalisation lost N27 billion to close at N15.931 trillion.
The downtrend was impacted by losses recorded in large and medium value stocks, including Mobil Nigeria, Ecobank Transnational Incorporated (ETI), Julius Berger, C&I Leasing, and International Breweries.
Transactions at the NSE, reversed Monday’s negative sentiment to close in an upbeat on Tuesday, causing the All Share Index (ASI) to appreciate by 0.83 per cent.
At the close of trading Tuesday, the ASI rose by 254.08 points or 0.83 per cent to 30,733.47 points. Also, investors gained N133 billion in value as market capitalisation increased by N16.064 trillion.
The upturn was impacted by gains recorded in medium and large capital stocks, including Dangote Cement, Chemical and Allied Products (CAP), Vitafoam Nigeria, Dangote Sugar Refinery, and Oando.
Transactions on the NSE closed on a downward trend on Tuesday, causing market capitalisation to plunge by N42 billion.
The ASI shed 90.80 absolute points, representing a decline of 0.26 per cent to close at 35,056.82 points. Similarly, market capitalisation value also declined by N42 billion to close at N18.323 trillion.
The downtrend was driven by price depreciation in medium and large capitalised stocks amongst which are; Nigerian Breweries, Chemical and Allied Products, Guaranty Trust Bank, Northern Nigeria Flour Mills and Flour Mills of Nigeria.
Negative sentiments persisted on the equity sector of the) on Thursday, as the ASI depreciated further by 0.25 per cent
At the close of transactions, ASI shed 87.88 absolute points, representing a decline of 0.25 per cent, to close at 34,968.94 points while the market capitalisation value also declined by N46 billion to close at N18.277 trillion.
The downtrend was driven by price depreciation in medium and large capitalised stocks – Guaranty Trust Bank, Flour Mills of Nigeria, Cadbury Nigeria, United Bank for Africa and Zenith Bank.
Market sentiment, as measured by market breadth, was negative as 25 stocks declined relative to 13 gainers. Mutual Benefits Assurance recorded the highest price gain of 9.52 per cent to close at 23 kobo.
Royal Exchange followed with a gain of 9.09 per cent to close at 24 kobo while FTN Cocoa Processors rose by eight per cent to close at 27 kobo.
Ardova Plc went up by 7.69 per cent to close at N14.00 while Cutix appreciated by 5.56 per cent to close at N1.90 kobo.
On the other hand, Unity Bank led the losers’ chart by 9.86 per cent to close at 64 kobo. Chams followed with a decline of eight per cent to close at 23 kobo while Nigerian Aviation Handling Company (NAHCO) declined by 6.81 per cent to close at N2.19 kobo.
Further analysis of last week’s trading showed that a turnover of 1.675 billion shares worth N25.425 billion was recorded in 23,650 deals by investors on the floor of the Exchange, in contrast to a total of 1.816 billion shares valued at N25.791 billion that was exchanged in 31,665 deals during the preceding week
The financial services industry (measured by volume) led the activity chart with 1.206 billion shares valued at N12.064 billion traded in 13,534 deals; thus contributing 72.00 per cent to the total equity turnover volume.
The consumer goods industry followed with 102.368 million shares worth N3.616 billion in 3,511 deals.
The third place was Natural Resources Industry with a turnover of 86.626 million shares worth N17.492 million in 28 deals.
Trading in the top three equities namely Access Bank Plc, FBN Holding Plc and Zenith Bank Plc (measured by volume) accounted for 475.819 million shares worth N6.144 billion in 4,900 deals, contributing 28.41 per cent to the total equity turnover volume.