Market indices plunge by 2.84 per cent in five trading days

AT the close of last week’s transactions on the trading floor of the Nigerian Stock Exchange (NSE), the All-share Index and market capitalisation depreciated by 2.84 per cent to close the week at 39,323.62 points and N14.244 trillion respectively, even as all other indices finished lower.

Also, a total turnover of 1.372 billion shares worth N16.022 billion was recorded in 21,099 deals by investors, down from a total of 1.457 billion units valued at N23.666 billion, exchanged in 19,674 deals during the preceding week.

Analysts expressed hope on market rebound in a near future as the stocks have bottomed out, creating attractive opportunities for entry. Specifically, analysts at Vetiva Research, said: ”With bears holding sway at the week’s close and all market indicators sustaining negative trend, we expect sentiment to remain bearish at the opening of the week.”

Afrinvest noted that “with the bearish performance this week, we are optimistic of a rebound in the near term as price depreciation in large and mid cap stocks create attractive entry opportunities.”

Last week, the financial services industry (measured by volume) led the activity chart with 1.01 billion shares valued at N8.67 billion traded in 12,049 deals, thus contribut- ing 73.62 per cent to the total equity turnover volume.

The services industry followed with 107.246 million shares worth N229.715 million in 712 deals, while the consumer goods industry ranked third with a turnover of 71.946 million shares worth N5.506 billion in 3,818 deals.

Trading in the top three equities namely –Zenith Bank International Plc, African Alliance Insurance Company Plc and Ikeja Hotel Plc (measured by volume) accounted for 276.876 million shares worth N2.939 billion in 2,112 deals, contributing 20.18 per cent to the total equity turnover volume.

Also traded during the week were 70 units of Exchange Traded Products (ETPS) valued at N1,943.00 executed in seven deals, compared with a total of 153,246 units valued at N4.009 million that was transacted last week in 22 deals.

A total of 10,754 units of Federal Government bonds valued at N11.412 million were traded this week in five deals, compared with a total of 7,508 units valued at N7.506 million transacted last week in 12 deals.

Also, 14 equities appreciated in price during the week, lower than 20 in the previous week, as 61 equities depreciated in price, higher than 54 equities of the previous week, while 94 equities remained unchanged lower than 95 equities recorded in the preceding week.