Q1 Fact Sheet: Market snapshot shows key indicators in red
…MTNN to the rescue
The Nigerian stock market may have started recouping some of its record losses but a look at its performance in the first-quarter (Q1) of 2019 shows all key indicators in the red.
Total Market Capitalisation at N22.33trillion or $61.91 billion shows a decline of 10.21percent in the 52-week period (April-2018 to March-2019), according to the recently released Q1 Fact Sheet of the Nigerian Stock Exchange (NSE).
Equities Market Capitalisation at N11.65 trillion or $32.30billion represents a 52-week decline of 22.34percent. Exchange Traded Fund (ETF) Market Capitalisation at N5.66billion or $15.70million represents a decrease of 26.55percent. Bonds Market Capitalisation at N10.64trillion or $29.50billion shows it increased by 7.93percent.
Average daily value traded across all products on the NSE decreased by 53.24percent to N3.26 billion ($9.05 million), from N6.98 billion in the previous year. Similarly, in Q1 2019 the average daily volume traded decreased by 53.49percent to 323.52 million units in Q1 2019, from 695.65 million units in Q1 2018; while the number of transactions recorded during the quarter in review declined
by 37.27percent.
Total Volume in Q1 at 20.704billion, down 52.76percent ; total Value Traded (Q1) at N208.887billion shows 52.50percent decline; while Average Daily Transactions (Q1) at 3,769.72, represent a dip of 38.25percent.
At the end of Q1 2019, the average price-earnings (PE) ratio of The Exchange’s listed equities stood at 17.92 compared to 24.91 in the previous year. The equity turnover velocity also declined by 4.55 percentage points to 7.17percent, from 11.72percent in Q1 2018. The dividend yield for the 52- week period ended March 29, 2019 was 6.15percent, compared to 4.61percent for the previous year.
The market flows show that domestic investors accounted for 52.51percent of the transactions in 2017; 49.13percent in 2018; and 47.21percent in Q1’19; while foreign investors accounted for 47.49percent of the transactions in 2017, 50.87percent in 2018; and 52.79percent from January to March 2019.
Leading up to the Nigerian general elections, the equity market witnessed a significant decline as investors sought towards more guaranteed investment asset classes.
The nation also experienced declined external reserves amidst a weak global crude oil market which contributed to weakened investors’ appetite during the review period.
The stock market has seen remarkable gains since the listing of MTN Nigeria Communications Plc (MTNN) shares on the Nigerian Stock Exchange in this second quarter (Q2) of 2019. On May 16, MTNN listed by introduction its 20.35billion shares at N90 per share. MTNN stood at N132 per share as at 1.50pm on Tuesday May 28, 2019; while the NSE equities market cap hovered at N13.616trillion.
Since then it has witnessed remarkable increase which helped push the market capitalization to a new high and moderated the yearto-date (ytd) loss.
“The equity market came alive with five days’ trading of MTN Nigeria. It was interesting to see some major bank stocks sell off against the market’s trend, with the effect of giving them cheaper valuations than before”, according to Coronation Research analysts in their May 27 note.
In the review first-quarter ended March, the NSE-30 Index at 1,392.65 points in Q1’19, represents a decline of 25.70percent from a 52 week
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