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Equities: Market Capitalization Closes Another Week Low – 0.12%

Market Capitalization closed yet another week low shedding 0.12 per cent of its previous week’s trading activities.

Joy Onyemaechi

The bullish activity on the 12th of June was not enough to boost the market as it closed lower than the previous week. Market capitalization closed at N11.477 trillion as against the previous week capitalization of N11.491 trillion. The All Share index lost 43.16 points to close the week with 33,621.75 points as against the prior week which closed with 33,664.91 points. This brings the All Share Index year to date loss to 2.99 per cent. During the week 1.221 billion shares worth N16.964 billion in 19,847 deals were traded by investors on the floor of the Nigerian Stock Exchange in contrast to a total of 1.169 billion shares valued at N11.961 billion that changed hands in 17,769 deals.

The market thus appreciated 415 million shares which is 35.5 per cent in terms of volume of trade and N8.19 billion which is 68.47 per cent in terms of value of trades. On the activity chart, the financial service sector led after trading 929.32 million shares valued at N6.909 billion in 9,877 deals. Thus contributing 60.05 per cent and 39.42 per cent to the total market volume and value traded respectively.

The Consumer service sector followed with a turnover of 119.51 million shares worth N6.65 billion in 2,978 deals thus contributing 39.09 per cent to the total trades. Third on the line was the Industrial Goods with 73.575 million shares worth N1.703 billion in 809 deals thus contributing 9.72 per cent to the total market trading activities. Equities which moved the market the most were Zenith, UBA and Unilever Plc. They accounted for 678.964 million shares worth N5.703 billion in 2,711 deals contributing 43.89 per cent and 32.54 per cent of the total equity turnover volume and value respectively. Of the 182 equities that were traded on the floor of the Nigerian Exchange last week, only 24 of them appreciated in price, 41 shed prices while 117 of them their opening prices.

This is compared to last week in which there were 31 price gainers, 41 which shed prices and 120 which maintained their share price. Top ten equity gainers for last week based on percentage of equity price gained was led by PZ which gained 19.86 per cent to close the week with a share price N35.00. Closely following was Okumo Oil Plc with a 14.80 per cent gain to close the week with share price of N34.90 as against N30.40 of the previous week. Next on the list was May and Baker with 14.38 per cent to close the week with N1.75 as against N1.53 in the previous week.

National Salt Company of Nigeria and Forte Oil Plc closely followed closing the week with share prices of N7.99 and N173 gaining 14.14 and 8.22 per cent respectively. Livestock Plc closed the week with an equity price of N2.40 which is 6.67 per cent better than its price in the penultimate week.

Portland Paints Plc, UBA Capital Plc and Berger Paints Plc were able to make the top spot after gaining 4.76, 4.49 and 3.27 per cent to boost their prices to N4.18, N1.46 and N11.36 respectively. To close the list is Total which appreciated in share price by 3.19 per cent to close the month at N159.99. NAHCO led the list of losers for the week after shedding 14.08 per cent of its price to close the week with N5.95 as against N6.11 in the prior week.

Costain was next with a closing share price of N0.96 due to 9.43 per cent loss in share price recorded last week. Others include Betaglass, Ikeja Hotels, Pfizer and Stanbic IBTC Plc which shed 9.32, 7.46, 7.03 and 6.74 per cent ended the week with a closing price of N39.90, N3.60, N1.19 and N27.00 respectively. AIICO shed 6.00 per cent to close the week with N0.94. Fidelity lost 5.88 per cent to close with N1.76. C I Leasing lost 5.71 per cent to close the week with N0.66 and Diamond Bank couldn’t breakeven with its N4.20 closing price, 5.71 per cent south of what it at the beginning of the week. Of the 13 banks quoted on NSE, 8 of them appreciated in equity price.

They include include Eco Bank, FCMB, Wema, Fidelity, Sterling, Zenith and UBA. Six of the banks lost share value with Fidelity Bank as the highest loser after losing 5.88 per cent of its share price to close the week with N1.76. Other banks on the losers table include Unity, GTB, Diamond, Union Bank and Access bank.. Despite improvement witnessed in terms of volume and value of trade transaction, the capital base of the economy still depreciated. The regulators of the market are doing all possible to make sure that the market is restored. They hope the new Par Value floor would help boost liquidity in some stocks which have been Moribound for so long. This would on the long run help improve trading and the capitalization of the market.

As investors would begin to take interest in such stocks. Although things can’t just fall into place just immediately as the economy would need to get used to the new government and so we hope for the best.

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