Sell pressure persists as equities shed N1.2trn in a week
By Kayode Ogunwale, Lagos | Publish Date: Jan 16 2016 12:46AM | Updated Date: Jan 16 2016 12:47AM...stocks hit all-time low
image: http://cms.dailytrust.com.ng/cms/gall_content/2016/1/2016_1$largeimg16_Jan_2016_004643700.jpg
Massive sell pressure in the equities listed on the Nigerian Stock Exchange as the market touched a new 3-year low of N8.087 trillion with a loss of N1.209 trillion in a week. Index movement shows that the NSE All-Share Index and market capitalization depreciated by 13 per cent to close the week at 23,514.04 basis points and N8.087 trillion respectively.
Similarly, all other Indices finished lower during the week, with the exception of the NSE Alternative Securities Market Index that chalked up by 0.07 per cent to close at 1,204.49 points. According to 2016 outlook of CardinalStone Research, local intervention, exchange rate stability and NSE market initiatives will primarily influence equity market performance in 2016. The financial firm’s believed that increased local retail and institutional participation will be a key determinant of market recovery in 2016. They further that the recovery of the equities market in 2016 will depend on increased local participation by both retail and institutional investors (pension fund managers etc). “Foreign transactions have dominated market activity, accounting for over 50 per cent of total value traded in the last 3 years and dictating direction and market fortunes over the same period. Negative stock market returns and overall market volatility have historically been associated with huge foreign capital outflows and thus to ensure market stability there is the need for policies and strategies that will attract and sustain local interest in the market.” When the trading close for the week, a turnover of 1.459 billion shares worth N14.165 billion in 15,164 deals were traded by investors on the floor of the exchange in contrast to a total of 899.604 million shares valued at N7.669 billion that exchanged hands last week in 14,164 deals. The Financial Services Industry (measured by volume) led the activity chart with 1.287 billion shares valued at N8.953 billion traded in 10,020 deals; thus contributing 88.17 per cent and 63.20 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 59.832 million shares worth N3.072 billion in 2,165 deals. The third place was occupied by the Conglomerates Industry with a turnover of 56.606 million shares worth N152.949 million in 695 deals. Trading in the top three equities namely; Guaranty Trust Bank Plc, Zenith International Bank Plc and FBN Holdings Plc. (measured by volume) accounted for 693.443 million shares worth N7.719 billion in 5,960 deals, contributing 47.51 per cent and 54.49 per cent to the total equity turnover volume and value respectively. On day by day trading, the equities market recorded a loss of N234 billion at the close of trading on Monday, as the local bourse settled at N9.062 trillion. As a result, All Share Index was down by 678.21 basis points to settle at 26,350.18 points. Correction in Dangote Cement and Nigerian Breweries largely contributed to the negative market close. Market activity measured by value and volume traded followed general market sentiment decreasing by 29.2 per cent and 45.8 per cent, to settle at N1.372 billion and 127 million units respectively. Market breadth was slightly higher than previous close, but indicates an overly bearish mood, as a fractional five counters appreciated in comparison to 31 decliners. Returns across the major sectors were negative at the close of trading session. The Industrial Goods sector saw the biggest losses as it returned 4.7 per cent on the back of a decrease of 4.3 per cent and 9.7 per cent in the price of Dangote Cement and Lafarge Africa. The Consumer Goods sector was down by 1.5 per cent on the back of further losses seen in PZ, Nigerian Breweries and 7UP Bottling Company. Losses in FBN Holdings, Stanbic IBTC and Zenith Bank drove the Financial Services sector 1.3 per cent lower. Also, Oando continued to shed intermittent gains as it lost another 6.9 per cent of its share price today bringing the Oil and Gas sector down by 0.3 per cent. On Tuesday, market traded on the lingering weak sentiment which drove sell pressure across the board, more pronounced in top banking and consumer space. Thus, the benchmark index recorded a loss of 1.2 per cent to close at 26,034.93 points. Similarly, market capitalization was down to N8.954 trillion after losing N108.4 billion. Market activity measured by value and volume traded followed general market sentiment as value and volume traded increased by 83.1 per cent and 75 per cent, settling at N2.5 billion and 223.4 million units respectively. A fractional 8 counters appreciated in comparison to 32 decliners. Returns across the major sectors remained negative at the close of trading session. Despite gains in Access Bank, the financial services led the losses in returns at 2.7 per cent on the back of broad base losses in Zenith Bank, Ecobank Transnational Incorporated and FBN Holdings. Declines in Nigerian Breweries and PZ further dragged the Consumer Goods sector down with a 1.7 per cent return. Further losses in Oando saw the Oil and Gas sector return negative 0.3 per cent. The industrial goods sector return 3.8 per cent on the back of a 3.8 per cent drop in the price of Ashaka Cement shares. The equities market sustained its downward trend on Wednesday on the back of bearish oil price and its resultant effect on the domestic fiscal and monetary terrain. This led to a sell pressure across board, more pronounced in the bellwether Dangote Cement, Guaranty Trust Bank, Nigerian Breweries, Nestle Nigeria, Lafarge Africa and Zenith Bank. Consequently, the benchmark index lost 931.88 basis points to close at 25,103.05. Similarly, market capitalization was down to N8.633 trillion after losing N321 billion. Value traded decrease by 32.8 per cent to N1.689 billion while volume traded increased by 65.3 per cent settling at 369.2 million units. The major sectors once again followed the bearish traits of the market. The Industrial Goods sector saw the biggest returns at negative 4.6 per cent on the back of losses in Dangote Cement and Lafarge Africa. Losses in FBN Holdings, Guaranty Trust Bank, Access Bank and Zenith Bank significantly contributed to the Financial Services returning 4.6 per cent. The Consumer Goods sector saw returns of negative 3.2 per cent due to losses in 7UP Bottling Company and Nigerian Breweries. Further declines in Oando drove the Oil and Gas sector return negative 0.3 per cent. The benchmark index lost 3.4 per cent on Thursday to close at 24,239.98. Correspondingly, market capitalization was down to N8.337 trillion after losing N296.8 billion. Value traded increased by 42.6 per cent to N2.409 billion while volume traded decreased by 28.93 per cent settling at 262.5 million units. Only 5 stocks appreciated in comparison to 31 decliners. However, the pronounced sell pressure seen in the market pervaded all sectors. The financial services returned lowest at 4.5 per cent due to losses in Guaranty Trust Bank, FBN Holdings, Access Bank and Zenith Bank. Losses of 5 per cent in Dangote Cement pushed the Industrial Goods sector to a negative 4.3 per cent return. Oando sustained its bearish sentiments as it lost another 9.7 per cent of it share price, Total Nigeria and Seplat Petroleum Development Company also contributed to the negative 2.7 per cent return seen in the Oil and Gas Sector. The Consumer Goods sector saw returns of minus 2.4 per cent due to losses of 5 per cent in Nigerian Breweries and PZ. Trading dropped further on Friday as market capitalization close at N8.087 trillion from N8.337 trillion. Summary of price changes however indicates that seven equities appreciated in price during the week, lower than 17 equities of the previous week. Fifty-six equities depreciated in price, higher 50 equities of the previous week, while 127 equities remained unchanged, higher than 123 equities recorded in the previous week.
Read more at http://www.dailytrust.com.ng/news/business/sell-pressure-persists-as-equities-shed-n1-2trn-in-a-week/129193.html#uGBKti06v6SrwiPY.99, Lagos | Publish Date: Jan 16 2016 12:46AM | Updated Date: Jan 16 2016 12:47AMbjhj
nchj...stocks hit all-time low
image: http://cms.dailytrust.com.ng/cms/gall_content/2016/1/2016_1$largeimg16_Jan_2016_004643700.jpg
Massive sell pressure in the equities listed on the Nigerian Stock Exchange as the market touched a new 3-year low of N8.087 trillion with a loss of N1.209 trillion in a week. Index movement shows that the NSE All-Share Index and market capitalization depreciated by 13 per cent to close the week at 23,514.04 basis points and N8.087 trillion respectively.
Similarly, all other Indices finished lower during the week, with the exception of the NSE Alternative Securities Market Index that chalked up by 0.07 per cent to close at 1,204.49 points. According to 2016 outlook of CardinalStone Research, local intervention, exchange rate stability and NSE market initiatives will primarily influence equity market performance in 2016. The financial firm’s believed that increased local retail and institutional participation will be a key determinant of market recovery in 2016. They further that the recovery of the equities market in 2016 will depend on increased local participation by both retail and institutional investors (pension fund managers etc). “Foreign transactions have dominated market activity, accounting for over 50 per cent of total value traded in the last 3 years and dictating direction and market fortunes over the same period. Negative stock market returns and overall market volatility have historically been associated with huge foreign capital outflows and thus to ensure market stability there is the need for policies and strategies that will attract and sustain local interest in the market.” When the trading close for the week, a turnover of 1.459 billion shares worth N14.165 billion in 15,164 deals were traded by investors on the floor of the exchange in contrast to a total of 899.604 million shares valued at N7.669 billion that exchanged hands last week in 14,164 deals. The Financial Services Industry (measured by volume) led the activity chart with 1.287 billion shares valued at N8.953 billion traded in 10,020 deals; thus contributing 88.17 per cent and 63.20 per cent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 59.832 million shares worth N3.072 billion in 2,165 deals. The third place was occupied by the Conglomerates Industry with a turnover of 56.606 million shares worth N152.949 million in 695 deals. Trading in the top three equities namely; Guaranty Trust Bank Plc, Zenith International Bank Plc and FBN Holdings Plc. (measured by volume) accounted for 693.443 million shares worth N7.719 billion in 5,960 deals, contributing 47.51 per cent and 54.49 per cent to the total equity turnover volume and value respectively. On day by day trading, the equities market recorded a loss of N234 billion at the close of trading on Monday, as the local bourse settled at N9.062 trillion. As a result, All Share Index was down by 678.21 basis points to settle at 26,350.18 points. Correction in Dangote Cement and Nigerian Breweries largely contributed to the negative market close. Market activity measured by value and volume traded followed general market sentiment decreasing by 29.2 per cent and 45.8 per cent, to settle at N1.372 billion and 127 million units respectively. Market breadth was slightly higher than previous close, but indicates an overly bearish mood, as a fractional five counters appreciated in comparison to 31 decliners. Returns across the major sectors were negative at the close of trading session. The Industrial Goods sector saw the biggest losses as it returned 4.7 per cent on the back of a decrease of 4.3 per cent and 9.7 per cent in the price of Dangote Cement and Lafarge Africa. The Consumer Goods sector was down by 1.5 per cent on the back of further losses seen in PZ, Nigerian Breweries and 7UP Bottling Company. Losses in FBN Holdings, Stanbic IBTC and Zenith Bank drove the Financial Services sector 1.3 per cent lower. Also, Oando continued to shed intermittent gains as it lost another 6.9 per cent of its share price today bringing the Oil and Gas sector down by 0.3 per cent. On Tuesday, market traded on the lingering weak sentiment which drove sell pressure across the board, more pronounced in top banking and consumer space. Thus, the benchmark index recorded a loss of 1.2 per cent to close at 26,034.93 points. Similarly, market capitalization was down to N8.954 trillion after losing N108.4 billion. Market activity measured by value and volume traded followed general market sentiment as value and volume traded increased by 83.1 per cent and 75 per cent, settling at N2.5 billion and 223.4 million units respectively. A fractional 8 counters appreciated in comparison to 32 decliners. Returns across the major sectors remained negative at the close of trading session. Despite gains in Access Bank, the financial services led the losses in returns at 2.7 per cent on the back of broad base losses in Zenith Bank, Ecobank Transnational Incorporated and FBN Holdings. Declines in Nigerian Breweries and PZ further dragged the Consumer Goods sector down with a 1.7 per cent return. Further losses in Oando saw the Oil and Gas sector return negative 0.3 per cent. The industrial goods sector return 3.8 per cent on the back of a 3.8 per cent drop in the price of Ashaka Cement shares. The equities market sustained its downward trend on Wednesday on the back of bearish oil price and its resultant effect on the domestic fiscal and monetary terrain. This led to a sell pressure across board, more pronounced in the bellwether Dangote Cement, Guaranty Trust Bank, Nigerian Breweries, Nestle Nigeria, Lafarge Africa and Zenith Bank. Consequently, the benchmark index lost 931.88 basis points to close at 25,103.05. Similarly, market capitalization was down to N8.633 trillion after losing N321 billion. Value traded decrease by 32.8 per cent to N1.689 billion while volume traded increased by 65.3 per cent settling at 369.2 million units. The major sectors once again followed the bearish traits of the market. The Industrial Goods sector saw the biggest returns at negative 4.6 per cent on the back of losses in Dangote Cement and Lafarge Africa. Losses in FBN Holdings, Guaranty Trust Bank, Access Bank and Zenith Bank significantly contributed to the Financial Services returning 4.6 per cent. The Consumer Goods sector saw returns of negative 3.2 per cent due to losses in 7UP Bottling Company and Nigerian Breweries. Further declines in Oando drove the Oil and Gas sector return negative 0.3 per cent. The benchmark index lost 3.4 per cent on Thursday to close at 24,239.98. Correspondingly, market capitalization was down to N8.337 trillion after losing N296.8 billion. Value traded increased by 42.6 per cent to N2.409 billion while volume traded decreased by 28.93 per cent settling at 262.5 million units. Only 5 stocks appreciated in comparison to 31 decliners. However, the pronounced sell pressure seen in the market pervaded all sectors. The financial services returned lowest at 4.5 per cent due to losses in Guaranty Trust Bank, FBN Holdings, Access Bank and Zenith Bank. Losses of 5 per cent in Dangote Cement pushed the Industrial Goods sector to a negative 4.3 per cent return. Oando sustained its bearish sentiments as it lost another 9.7 per cent of it share price, Total Nigeria and Seplat Petroleum Development Company also contributed to the negative 2.7 per cent return seen in the Oil and Gas Sector. The Consumer Goods sector saw returns of minus 2.4 per cent due to losses of 5 per cent in Nigerian Breweries and PZ. Trading dropped further on Friday as market capitalization close at N8.087 trillion from N8.337 trillion. Summary of price changes however indicates that seven equities appreciated in price during the week, lower than 17 equities of the previous week. Fifty-six equities depreciated in price, higher 50 equities of the previous week, while 127 equities remained unchanged, higher than 123 equities recorded in the previous week.
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