Investors lose N6.4bn in bearish trading, await MPC meeting outcome
Investors in the stock market, on Monday, lost N6.4 billion from their investment in shares quoted on the Nigerian Stock Exchange, NSE as market operators hinged this week’s market performance on the outcome of Monetary Policy Committee, MPC meeting which is expected to end on Tuesday.
The NSE market capitalisation which represents the total value of equities traded on the NSE dropped marginally by 0.07 per cent to close trading at N9.563 trillion from N9.570 trillion it closed last week Friday, %, while the Year-to-Date return stood at -2.80 per cent In the same vein, another stock market gauge, the All Share Index dropped by 0.07 per cent or 18.55 points to close at N27, 839.93 points from 27,858.48 points it closed on Friday.Market operators attributed the bearish market to profit taking by investors as the market had last week closed in the green on all three trading sessions of the week. Consequently, market capitalization improved by N96.5billion to settle at N9.6 trillion.
Activity level moderated consequent on fewer trading days (only 3) last week as a result of the Eid al-Adha public holidays; hence, average volume and value traded slid 13.9 per cent and 11.1 per cent Week on Week, W-o-W to 203.8million units and N1.8billion respectively.
Meanwhile, transaction volume traded yesterday increased by 43.36 per cent from 228.935 million shares to 328.203 million shares, while the total value of stock traded increased by 37.23 per cent from ¦ 2.109 billion to ¦ 2.895 billion in 3,215 deals. The Financial Services sector led the activity chart with 302.774 million shares exchanged for ¦ 1.7 billion.
Conglomerates came next with 8.302 million shares traded for 0.052 billion, Consumer Goods, Oil And Gas, Industrial Goods sectors followed in that order on the activity chart. Access Bank Plc, FirstBank Nigeria Holding Plc , United Bank for Africa, UBA Plc, Skye Bank Plc and Zenith Bank Plc were the most active stocks by volume.
Conoil Plc , Total, MRS Plc , Transcorp Plc and Skye Bank Plc emerged the highest price gainers on the chart, while 7UP Bottling Company Plc, Fidson Plc , PZ Industries Plc, Avoncrown and African Prudential Plc topped the losers chart. In its comment on market performance, Afrinvest West Africa said that this week’s performance will be broadly driven by investors’ reactions to the outcome of the MPC meeting slated for 19th and 20th September, 2016.
According to Afrinvest “We believe the MPC is faced with three possible options: Ease monetary policy in response to growth slowdown and widening output gap; maintain status quo whilst reinstating the need to fully implement the currency market reforms to regain credibility and push for fiscal-monetary policy coordination to implement structural reforms; and hike rate further to conform with recently guided inflation-targeting thrust and further attract portfolio capital inflows.
“We opine that the MPC will elect to maintain status quo on all monetary policy rates while studying further developments in the economy. We also do not rule out the possibility of some profit taking by investors in counters that appreciated significantly in the prior week.
The NSE market capitalisation which represents the total value of equities traded on the NSE dropped marginally by 0.07 per cent to close trading at N9.563 trillion from N9.570 trillion it closed last week Friday, %, while the Year-to-Date return stood at -2.80 per cent In the same vein, another stock market gauge, the All Share Index dropped by 0.07 per cent or 18.55 points to close at N27, 839.93 points from 27,858.48 points it closed on Friday.Market operators attributed the bearish market to profit taking by investors as the market had last week closed in the green on all three trading sessions of the week. Consequently, market capitalization improved by N96.5billion to settle at N9.6 trillion.
Activity level moderated consequent on fewer trading days (only 3) last week as a result of the Eid al-Adha public holidays; hence, average volume and value traded slid 13.9 per cent and 11.1 per cent Week on Week, W-o-W to 203.8million units and N1.8billion respectively.
Meanwhile, transaction volume traded yesterday increased by 43.36 per cent from 228.935 million shares to 328.203 million shares, while the total value of stock traded increased by 37.23 per cent from ¦ 2.109 billion to ¦ 2.895 billion in 3,215 deals. The Financial Services sector led the activity chart with 302.774 million shares exchanged for ¦ 1.7 billion.
Conglomerates came next with 8.302 million shares traded for 0.052 billion, Consumer Goods, Oil And Gas, Industrial Goods sectors followed in that order on the activity chart. Access Bank Plc, FirstBank Nigeria Holding Plc , United Bank for Africa, UBA Plc, Skye Bank Plc and Zenith Bank Plc were the most active stocks by volume.
Conoil Plc , Total, MRS Plc , Transcorp Plc and Skye Bank Plc emerged the highest price gainers on the chart, while 7UP Bottling Company Plc, Fidson Plc , PZ Industries Plc, Avoncrown and African Prudential Plc topped the losers chart. In its comment on market performance, Afrinvest West Africa said that this week’s performance will be broadly driven by investors’ reactions to the outcome of the MPC meeting slated for 19th and 20th September, 2016.
According to Afrinvest “We believe the MPC is faced with three possible options: Ease monetary policy in response to growth slowdown and widening output gap; maintain status quo whilst reinstating the need to fully implement the currency market reforms to regain credibility and push for fiscal-monetary policy coordination to implement structural reforms; and hike rate further to conform with recently guided inflation-targeting thrust and further attract portfolio capital inflows.
“We opine that the MPC will elect to maintain status quo on all monetary policy rates while studying further developments in the economy. We also do not rule out the possibility of some profit taking by investors in counters that appreciated significantly in the prior week.
