Uncertainties trail domestic market ….will sentiment be sustained or reversed?

On the back of uncertainties surrounding the policy direction of the new government, the bears continue in the market with the market trading negative in 3 out of 5 trading days. At the end of the week, index movement indicates that the NSE All-Share Index and market capitalization marginally depreciated by 43.16 basis points or 0.13 per cent and N14 billion represented 0.12 per cent to close on Friday at 33,621.75 and N11.477 trillion respectively.

Similarly, five indices finished lower during the week, while NSE Consumer Goods, NSE Oil & Gas and NSE Lotus Islamic Indices closed higher by 0.93 per cent, 0.62 per cent and 0.38 per cent respectively.

Analysts said the present bearish sentiment in the market will likely be sustained.

They believed that the inauguration of the 8th assembly will steer policy direction by the new government relating to key appointments and quick fixes.

On equity segment, when the market closing for the week, a turnover of 1.552 billion shares worth N17.532 billion in 17,785 deals were traded by investors on the floor of the exchange in contrast to a total of 1.221 billion shares valued at N16.964 billion that exchanged hands last week in 19,847 deals.

The financial services industry (measured by volume) led the activity chart with 929.317 million shares valued at N6.909 billion traded in 9,877 deals; thus contributing 59.88 per cent and 39.41 per cent to the total equity turnover volume and value respectively. The Natural Recourses Industry followed with a turnover of 129.851 million shares worth N64.956 million in 43 deals. The third place was occupied by the Consumer Goods Industry with 119.507 million shares worth N6.850 billion in 2,978 deals.

Trading in the top three equities which comprises United Bank for Africa Plc, Multiverse Plc and Cornerstone Insurance Plc, (measured by volume) accounted for 586.163 million shares worth N2.999 billion in 719 deals, contributing 37.77 per cent and 17.11 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 19,675 units of Exchange Traded Products (ETPs) valued at N1.296 billion executed in 21 deals compared with a total of 8,966 units valued at N5.556 million transacted last week in 32 deals.

In the same vein, a total of 3,450 units of Federal Government Bonds valued at N4.053 million were traded this week in 3 deals compared with a total of 14,817 units of Federal Government Bonds valued at N17.586 million traded in 5 deals in the previous week.

Summary of price changes shows that 24 equities appreciated in price during the week, lower than 27 equities of the preceding week. Forty-two equities depreciated in price, lower than 47 equities of the preceding week, while 127 equities remained unchanged, higher than 119 equities recorded in the preceding week.

Forte Oil Plc the led gainers chart with N13.15 kobo per share to close at N173.00 kobo, followed by P. Z. Industries Plc with N5.80 kobo to close at N35.00 kobo, Okomu Oil Palm Company Plc with N4.50 kobo to close at N34.90 kobo Total Nigeria Plc with N4.94 kobo to close at N159.99 kobo per share.

Others on the chart are, National Salt Company of Nigeria Plc with N0.99 kobo to close at N7.99 kobo, Berger Paints Nigeria Plc with N0.36 kobo to close at N11.36 kobo, Ecobank Transnational Incorporated Plc with N0.29 kobo to close at N21.99 kobo, Cement Company of Northern Nigeria Plc with N0.23 kobo to close at N10.55 kobo, May & Baker Plc with N0.22 kobo to close at N1.75 kobo and Portland Paints Plc with N0.19 kobo to close at N4.18 kobo per share.

On the other hand Nestle Nigeria Plc led on the losers table with N18.93 kobo loss to close at N850.07 kobo, Mobil Oil Nigeria Plc lost N8.30 kobo to close at N148.00 kobo, Beta Glass Company (Nig.) Plc with N4.10 kobo to close at N39.90 kobo, Stanbic IBTC Holdings Plc with N1.95 kobo to close at N27.00 kobo per share and 7-Up Bottling Company Plc with N1.40 kobo to close at N178.10 kobo.

Others on the chart are, Oando Plc with N0.86 kobo to close at N16.95 kobo, National Aviation Handling Company Plc with N0.86 kobo to close at N5.25 kobo, Flour Mills Nigeria Plc with N0.75 kobo to close at N34.94 kobo, Guaranty Trust Bank Plc with N0.65 kobo to close at N26.85 kobo and, Unilever Nigeria Plc with N0.50 kobo to close at N45.00 kobo per share.