Financial Services Sector Remains Upbeat Amidst Bearish Market

• Financial Services Sector Remains Upbeat Amidst Bearish Market

Despite the bearish market which prevailed in the Nigerian Stock Exchange, NSE, in the past one month, the financial services sector remained upbeat both in terms volume and value traded and also emerged the only sector to record positive return to investors last week.

At the end of the week’s trading, the banking and insurance sectors recorded 0.44 per cent and 0.90 per cent return to close at 227.38 points and 124.80 points respectively, while all the sectors recorded negative return.

The NSE 30 Index decreased by 214 bps to 1,117.28 points while the NSE Consumer Goods Index and the NSE oil and gas Index fell by 5.72 per cent and 0.91 per cent to close at 596.66 points and 285.34 points respectively. Similarly, the industrial goods sector depreciated by 2.58 per cent to close at 1,577.71 points.

As a result, the equities market capitalisation declined by N122 billion, falling from N8.892 trillion in the previous week to N8.770 trillion, thus representing 1.38 per cent decline. The All Share Index, ASI, decreased by 1.79 per cent to settle at 25,340.02 basis points from 25,802.54 points.

The financial services sectors also led transactions in the market in terms of volume and value traded, accounting for 905.319 million shares valued at N3.399 billion traded in 7,501 deals, thus contributing 86.03 per cent and 42.32 per cent to the total equity turnover volume and value respectively. This was followed by the conglomerates sector, which accounted for 43.996 million shares worth N70.390 million traded in 581 deals. The third place was occupied by consumer goods sector with a turnover of 30.487 million shares worth N1.767 billion in 2,565 deals.

Trading in Aiico Insurance Plc, Fidelity Bank Plc and Diamond Bank Plc, measured by volume, accounted for 367.616 million shares worth N277.747 million in 895 deals, thereby contributing 34.95 per cent and 3.46 per cent to the total equity turnover volume and value respectively.

Gainers and losers

UACN Property Development Company Plc led 37 other losers, declining by 23.79 per cent to close at N1.89, followed by PZ Cusson Plc with 18.46 per cent price depreciation to close at N11.04. Forte Oil Plc closed as the third on the top losers chart, dropping by 11.69 per cent to close at N53.87; FBN Holdings Plc went down by 10.57 per cent to close at N3.13, while Nestle Nigeria Plc depreciated by 8.18 per cent to close at N624.40 per share.

On the other hand, Caverton Offshore Group Plc led the gainers, rising by 12.50 per cent to close at N0.90, followed by Beta Glass Company Plc which appreciated by 10.23 per cent to close at N33.07, while Neimeth International Pharmaceuticals Plc went up by 6.45 per cent to close at N0.66 per share. Axa Mansard Insurance Plc and Transnational Corporation of Nigeria (Transcorp) Plc closed rose by 5.26 per cent apiece to close at N1.60 and N0.80 per share respectively.

Meanwhile, a total turnover of 1.052 billion shares worth N8.031 billion were exchanged by investors in 13,586 deals in contrast to a total of 1.153 billion shares valued at N8.032 billion traded in 12,783 deals in the previous week.