It was a week of loses for Investors on the Nigerian Stock Exchange with each trading session ending in the negative. It started with mild loses in the early days of the week, then increased to over one percent loss on Thursday, and approximately another one percent loss on Friday.
The market experienced massive sell-offs on Thursday, while high cap Dangote Cement Plc shares suffered a market impacting 8.04% decline on Friday; these two events were the reason for the high level of loses on these two days.
The NSE All-Share Index and Market Capitalization depreciated by 2.53% to close the week at 34,250.74 and N17.902 trillion respectively.
A total turnover of 2.265 billion shares worth N20.990 billion in 23,722 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.675 billion shares valued at N25.425 billion that exchanged hands last week in 23,650 deals.
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The Financial Services industry (measured by volume) led the activity chart with 1.884 billion shares valued at N14.933 billion traded in 13,602 deals; thus contributing 83.15% and 71.14% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 116.400 million shares worth N2.817 billion in 3,474 deals. The third place was Conglomerates Industry, with a turnover of 107.803 million shares worth N231.323 million in 897 deals.
Trading in the top three equities namely Jaiz Bank Plc, United Bank for Africa Plc and Zenith Bank Plc (measured by volume) accounted for 894.000 million shares worth N7.077 billion in 4,045 deals, contributing 39.47% and 33.72% to the total equity turnover volume and value respectively.
The activity level taken in total for the week was mixed, as the volume of shares traded increased by 35.19% over that recorded last week, while the value of shares traded decreased by 17.44%. The Investogist Activity chart shown below, indicate a moderation of the market activities towards what was seen prior to the market rally that started with the commencement of the forth quarter.
Fig 1: Investogist Activity Chart – NSE All-Share Index vs Activity level (measure of volume and value of traded shares)
Fig 2: Investogist Activity Chart – Market Capitalization vs No of deals
As at the end of trading on Friday, 11th December, the NSE ASI was up by 27.60% YTD. The performances of the 5 indices under our watch so far this year are presented below;
- Industrial Goods Index: +43.20%
- Insurance Index: +23.15%
- Banking Index: +6.47%
- Consumer Goods Index: -5.97%
- Oil & Gas Index: -16.30%
In the week ending 11th December, 2020, all the 5 indices under our watch declined;
- Oil & Gas Index: -0.25%
- Consumer Goods Index: -1.55%
- Insurance Index: -1.82%
- Banking Index: -2.93%
- Industrial Goods Index: -4.96%
Thirteen (13) equities appreciated in price during the week, lower than twenty-two (22) equities in the previous week. Forty-six (46) equities depreciated in price, higher than forty-five (45) equities in the previous week, while one hundred and two (102) equities remained unchanged, higher than ninety-four (94) recorded in the previous week.
Top gainers and losers in the week as reported by The NSE in its weekly report is as below;
Fig 3: Top gainers and losers
Three companies announced corporate actions in the week;
- NEM Insurance Plc announced a share bonus of 9 new shares for every 10 existing shares of 50 kobo held as at 16th December, 2020.
- The Frontier Fund announced a dividend proposal of N2.00 per note, with a qualification date of Thursday, 10 December 2020 and payment date on Friday, 11 December 2020.
- Nigerian Energy Sector Fund (NESF) announced a divided proposal of N7.00 per note, with a qualification date of Thursday, 10 December 2020 and payment date on Friday, 11 December 2020.
Niger Insurance Plc released its 1st, 2nd and 3rd quarter 2020 financial statements to the Nigerian Stock Exchange, subsequently the suspension on trading of its shares was lifted.
Bonds
A total of 13,555 units valued at N17.369 million were traded this week in 8 deals compared with a total of 3,198 units valued at N3.898 million transacted last week in 10 deals.
The Federal Government Savings Bond FGS202267 was the most traded by volume, with 6,600 units worth N8.086 million traded in 2 deals.
ETPs
A total of 292,510 units valued at N2.270 billion were traded this week in 45 deals compared with a total of 543,655 units valued at N4.694 billion transacted last week in 36 deals.
NEWGOLD was the most traded ETP in the week, with 262,870 units worth N2.269 billion exchanging hands in 33 deals.
The week ahead
We expect the weak activity level to continue, with the benchmark index direction being influenced heavily by high cap stocks.
By; Nnamdi M.
