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Elections ‘fever’ sustains hold on equities market, indices fall further

[FILES] Nigerian Stock Exchange (NSE)

Uncertainties surrounding the 2019 polls have continued to trigger sell-off pressure on the equities sector of the Nigeria Stock Exchange (NSE).

With the All-Share Index posting a loss of 2.64% week-on-week, analysts have argued that investor confidence is currently overshadowed by increased political threat, coupled with the underperformance of the economy that has created disappointments across the country.

According to them, equity market’s recovery will gain momentum after the general elections, irrespective of who emerges winner of next month’s presidential election, as long as there is no post-election crisis.

Last week, a total turnover of 1.265 billion shares worth N14.074 billion was recorded in 19,278 deals, on the floor of NSE in contrast to a total of 1.647 billion shares valued at N8.413 billion that changed hands in 14,773 deals during the preceding week.

The financial services industry (measured by volume) led the activity chart, with 1.072 billion shares valued at N8.795 billion, traded in 12,287 deals, thus contributing 84.73% to the total equity turnover volume.

The conglomerates industry followed with 83.595 million shares worth N155.485 million in 750 deals.

The consumer goods industry ranked third, with a turnover of 50.537 million shares worth N3.432 billion in 2,576 deals.

Trading in the top three equities- Diamond Bank Plc, FBN Holdings Plc and Custodian Investment Plc (measured by volume) accounted for 465 million shares worth N2.044 billion in 2,448 deals, contributing 36.75% to the total equity turnover volume.

Also traded during the week were 15,288 units of Exchange Traded Products (ETPs) valued at N236,445.40, executed in four deals, compared with 395 units valued at N816,344.70, transacted last week in 13 deals

A total of 17,996 units of Federal Government bonds valued at N18.426 million was traded last week in 10 deals, compared with 7,209 units valued at N6.958 million transacted in the preceding week in eight deals.

About 22 equities appreciated in price during the week, the same with 22 in the previous week, as 44 equities depreciated in price, lower than 45 of the previous week, while 103 equities remained unchanged higher than 97 equities recorded in the preceding week.

The Chief Research Officer of Investdata Consulting, Ambrose Omodion, said: “The ongoing volatility will persist as Q3 numbers assist investors and fund managers rebalance their portfolios, while watching the political space and post-election market dynamics.”

Also, analysts at Afrinvest Securities Limited noted that across sectors, performance was largely negative, as all indices, save for the Industrial Goods index, closed in the red week-on-week.

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Nigeria Stock Exchange
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