Market Loses N104 Billion As Bearstake Control

LAGOS – After hitting an all-time high the previous week, the Nigerian equities market ended the month of November on a poor note as the bears dominated activities on four trading days of the week. As a result, the week-to-date (WTD) return declined by 0.83 per cent, while the month-to-date (MTD) return dipped to 3.45 per cent. The market lost about N20 billion in value on daily basis bringing the week’s decline to N104 billion to settle at N12.449 trillion. Sustained profit-taking by anxious investors was largely blamed for the poor showing.

The bulls had dominated the equities market throughout the previous week as the benchmark index closed positive climbing 0.32 per cent on the last trading day to settle at 39,246.05 points (the level it reached on July 13, 2013).

The week under review commenced with bearish movements as investors took profit on some stocks which rallied in the past week. At the close of business last Monday, the benchmark index saw moderate decline of 0.06 per cent, to settle at 39,222.02 points with WAPCO Plc and Transcorp Plc, dampening the ASI by 100 points. In the same vein, the market capitalisation shed N8 billion to reach N12.545 trillion. Also, activity level slumped in volume and value terms with the market recording 545.2 million units valued at N3.97 billion were consummated in 5,929 deals. Thus indicating 53.1 per cent drop in volume of trades and 49.8 per cent in value. With the highest volume and value of trades Transcorp topped the activity level with 170.97 million units worth N926.80 billion exchanged.

The market continued on that note on Tuesday with the benchmark index retreating 246.86 points (0.63 per cent) to close 38,975.16 points as profit-taking continued to drag the market to a bearish mood for the second trading day. Volume of trade consummated on the floor declined 17.7 per cent while value of stocks exchanged increased 21.0 per cent as 448.86 million valued at N4.808 billion were transacted at the end of the trading day. Weighing down the index were WAPCO Plc, FBN Holdings Plc and Transcorp Plc, which shaved 141 points off the index. On the day, all sector performance indices closed red with the oil & gas sector delivering a 0.82 per cent decline. For the Financial sector, both banking and insurance components also declined closely 0.47 per cent and 0.45 per cent each. Industrials also saw marginal declines of 0.16 per cent as well as the Consumer Goods which shed 0.12 per cent.

The market witnessed a small rebound on Wednesday as the main index grew 0.09 per cent or 36.1 points to close the day on a humble note at 39,011.31 points. The bourse opened on levels lower than previous close and trended downwards to mark a low of 38,809.39 points after which it peaked towards the close of trade. Market Capitalisation settled at N12.477 trillion.

The market returned southward on Thursday as the index closed 38,928.65 points, slipping 0.21 per cent paring the slight gain witnessed previous day.

Transcorp Plc continued to drag the index further helped by Guaranty Trust Bank Plc and Forte Oil Plc with an aggregate of 84 points negative contribution. Reduced activity level captured by the 30.1 per cent and 45.8 per cent decline in volume and value respectively. 252 million units were traded at the close of the day valued at N2.58 billion in 4,717 deals.


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