Investors’ sentiment turned negative after four consecutive weeks of gains last week, as the equities market defy the CBN’s policy-induced rally, recording losses across the five trading sessions of the week. The development triggered renewed sell-off last week, causing the NSE All-Share Index and market capitalisation to depreciate by 0.54 percent to close the week at 26,855.52 and N12.96 trillion respectively.
All other indices finished lower with the exception of NSE Pension, NSE-AFR Div Yield, NSE Consumer Goods and NSE Lotus II indices which appreciated by 0.03 percent, 1.54 percent 1.71 percent and 0.97 percent respectively, while the NSE ASeM Index closed flat. Analysts predict gloomy outlook in absence of any positive driven pronouncement.
Specifically, Codros Capital Limited said: “In our view, given the risked off sentiment dominating the domestic market, we expect the market to shed points in the coming week, except we see a policy-driven catalyst.”Nevertheless, valuations remain attractive, hence we expect pockets of gains over the final month of the year as fund and portfolio managers realign portfolios prior to the start of 2020.”
Investdata Consulting Limited said: “We expect the mixed performance to continue as investors take advantage of the four correctional profit-taking and indecision among market players to position. “This ahead of the usual Santa Claus and year-end rally as capital flow and repositioning in value stocks will persist. There is also the changing sentiment in the expectation of improved liquidity and positive economic indices.
“At the maturity of OMO investment, more funds will be available as CBN has restricted players to foreign investors and the local banks. Again, the current undervalued state of the market offers investors opportunities to position for short and medium-to-long-term views. “We expect that investors would target fundamentally sound and dividend-paying stocks for possible capital appreciation as the year draws down to usher in 2020.
“The wait-and-see attitude of market players in the first trading week of December is likely to close negative, thereby halting the four weeks of bull-run.”Further breakdown of last-week’s transactions showed that a turnover of 952.697 million shares worth N12.774 billion was recorded in 17,279 deals by investors on the floor of the exchange in contrast to a total of 1.161 billion shares valued at N13.174 billion that exchanged hands last week.
The financial services industry (measured by volume) led the activity chart with 690.986 million shares valued at N6.787 billion traded in 10,718 deals; thus contributing 72.53 per cent to the total equity turnover volume. The conglomerates industry followed with 101.908 million shares worth N701.283 million in 974 deals.
The third place was consumer goods industry with a turnover of 57.636 million shares worth N2.009 billion in 2,095 deals. Trading in the top three equities namely, FCMB Group Plc, Access Bank Plc and Zenith Bank Plc. (measured by volume) accounted for 334.221 million shares worth N3.116 billion in 3,684 deals, contributing 35.08 per cent to the total equity turnover volume and value respectively.
Also, 19 equities appreciated in price during the week, lower than 31 equities in the previous week. 35 equities depreciated in price, higher than 32 equities in the previous week, while one hundred and eleven (111) equities remained unchanged.A total of 6,140 units valued at N103, 759.84 were traded this week in 17 deals, compared with a total of 11,991 units valued at N102, 312.34 transacted last week in 30 deals. A total of 27,096 units of Federal Government Bonds valued at N27.630 million were traded this week in 25 deals, compared with a total of 313,912 units valued at N320.719 million transacted last week in 23 deals.
