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Market Capitalization Sheds 0.45% As Index Dips

The Nigerian Market Capitalization ended the third week of the month with a 0.45 per cent loss as All Share Index dropped by 0.49 per cent.

Joy Onyemaechi

Market capitalization closed the week ended May 22, 2015 with N11.644 trillion as against the previous week capitalization of N11.697 trillion losing N53 billion. Similarly, the All Share Index shed 167.31 points to close the week with 34,272.09 points as against the prior week which closed with 34,439.40 points. This brings the All Share Index year-to-date loss to 0.49 per cent.

All indices finished lower last week except NSE Insurance Index which edged higher by 0.99 per cent. The banking index shed 0.65 points, that is 0.16 per cent lower than previous week when it finished with an index of 396.51 points. NSE Insurance Index gained 1.46 points that is 0.99 per cent higher. It closed the week with 148.37 points as against 146.91 in the penultimate week.

During the week, 2.943 billion shares worth N16.045 billion in 21,306 deals were traded by investors on the floor of the Nigerian Stock Exchange (NSE) in contrast to a total of 1.626 billion shares valued at N14.426 billion that changed hands in 20,124 deals the previous week. The market thus appreciated by 1.317 billion shares which is 80.99 per cent in terms of volume of trade and gained N1.619 billion which is 11.22 per cent in terms of value of trades.

On the activity chart, the financial services sector led after trading 2,624 billion shares valued at N8.189 billion in 11,611 deals. Thus contributing 89.14 per cent and 51.04 per cent to the total market volume and value traded respectively. Following was the consumer goods with 82.643 million shares worth N4.752 billion in 3,753 deals thus contributing 3 per cent to the total market trading activities. Third is the Conglomerates with 73.966 million shares worth N365.50 million in 948 deals which is 2 per cent of total quantity traded in the market.

Equities which moved the market the most were Lasaco Insurance Plc, UBA and Skye Bank Plc. They accounted for 1.864 billion shares worth N2.028 billion in 1,972 deals contributing 63.33 per cent and 12.64 per cent of the total equity turnover volume and value respectively.

Of the 193 equities that were traded on the floor of The Exchange last week, 39 appreciated in price, 32 shed prices while 122 of them maintained their opening prices. This is positive, compared to last week activities which recorded 30 price gainers, while 41 shed prices and 122 maintained their share prices.

Top ten equity gainers for last week based on percentage of equity price gained was led by Vono Products Plc which gained 29.79 per cent to close the week with a share price N1.22. Closely following was N.E.M Insurance Co. Plc with a 29.41 per cent gain to close the week with share price of N0.88 as against N0.68 of the previous week. Next on the list was Skye Bank Plc with 18.43 per cent to close the week with N2.57 as against N2.17 in the previous week. May & Baker and Airline Services closely followed closing the week with share prices of N1.86 and N2.45 gaining 16.25 and 16.11 per cent respectively.

Fidson Healthcare Plc closed the week with an equity price of N3.59 which is 12.19 per cent better than its price in the penultimate week. Beta Glass, Pfizer products Plc and Trans Nationwide Express Plc were able to make the top spot after gaining 10.30, 9.09 and 8.49 per cent to boost their prices to N36.40, N1.20 and N1.15 respectively. To close the list was Associated Bus Company Plc which appreciated in share price by 7.14 per cent to close the month at N0.60. All the top gainers had more than 7 per cent increase in share prices.

Vitafoam Nigeria Plc led the list of losers for the week after shedding 22.41 per cent of its price to close the week with N4.95 as against N6.38 in the prior week. R.T. Briscoe was next with a closing share price of N0.80 due to 13.04 per cent loss in share price recorded last week. Others include Dangote Flour Mills, National Aviation Handling Company, A.T & T Global Info and Seplat Plc which shed 12.28, 10.59, 9.60 and 9.56 ended the week with a closing price of N4.07, N6.08, N11.02 and N350 respectively.

Evans Medical Plc shed 9.05 per cent to close the week with N1.81. Caverton Offshore lost 5.14 per cent to close with N3.51. A.G. Leventis lost 4.94 per cent to close the week with N1.54 and Portland Paints Plc couldn’t breakeven with its N3.47 closing price, 4.67 per cent south of what it was at the beginning of the week.

The capital market last week showed a fluctuating performance. Based on the capital importation, report released by the Nigerian Bureau of Statistics, inflows in Foreign Direct Investment and Foreign Portfolio Investment in shares dropped by 26.14 and 48.51 per cent respectively in 2015 first quarter.

Experts are of the view that the poor performance might be from the drop in foreign investment in shares inflows. Investors are still being careful as to the amount they spend investing as they don’t know the kind of policies that would be put in place by the incoming governments and what effect the policies would have on the various companies. Investors are not sure what to expect it would take a little more time to get the capital market to where we expect it to be.

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