Industrial Goods Sector Depresses Investors’ Wealth by N83bn

• Industrial Goods Sector Depresses Investors’ Wealth by N83bn

Losses sustained by the industrial goods sector, which turned out to be the only sector that recorded negative return last week, has dragged activity in the equities market to a negative close.

At the end of the trading session last week, the sector recorded 2.33 per cent negative return, thereby dragging the equities capitalisation down by N83 billion.

This was as a result of the negative disposition by investors to the shares of Dangote Cement Plc, an industrial goods giant and the single most capitalised stock on the Nigerian Stock Exchange, NSE, last week. The company’s shares fell by N8.44 or 4.99 per cent to close at N160.55 per share.

As a result, the market capitalisation slumped by N83 billion to close at N 8.656 trillion, while the All Share Index declined to 25,012.08 points, representing 0.94 per cent decrease.

However, all other sectors finished higher during the week with the oil and gas sector appreciating the most (4.51 per cent) propelled by in Seplat Petroleum Development Company Plc which rose by N30.00 or 8.11 per cent and Oando Plc that appreciated by N0.25 or 5.31 per cent.

The consumer goods sector followed by 0.84 per cent appreciation driven by gains in Nestle Nigeria Plc, that appreciated by N54.42 or 10.25 per cent, while the banking and insurance sectors rose by 0.77 per cent and 0.40 per cent respectively.

Gainers and losers

For every loser in the market during the week, there was a gainers as 24 equities appreciated in price corresponding with other 24 equities depreciated in price. United Capital Plc led the losers, dropping by 22.34 per cent to close at N2.85. Cadbury Nigeria Plc followed with 13.33 per cent decrease to close at N7.80; 7Up Bottling Company was the third, depreciating by 10.80 per cent to close at N95.00 per share.

Transnational Corporation of Nigeria,Transcorp Plc, fell by eight per cent to close at N0.69 per cent, while Unity Bank Plc went down by 7.59 per cent to close at N0.73. FCMB Group Plc fell by 6.98 per cent to close at N1.20; Guinness Nigeria Plc was down 6.62 per cent to close at N4.50, while African Prudential Registrar recorded 6.25 per cent decline to close at N2.70 per share.

On the other hand, Nestle Nigeria Plc led the gainers with 10.25 per cent increase to close at n628.42 per cent, followed by Okomu Oil Palm Plc with 10.23 per cent increase to close at N48.7o. Vitafoam Nigeria Plc was the next, as it rose by 9.88 per cent to close at N1.89. Aiico Insurance plc went up by 9.09 per cent to close at N0.60; Seplat went up by 8.11 per cent to close at N400.00, while UAC of Nigeria Plc appreciated by 5.95 per cent to close at N13.35 per share.

Volume and value

A total turnover of 1.387 billion shares worth N13.726 billion were traded by investors in 15,422 deals compared to 765.656 million shares valued at N9.717 billion that exchanged hands the previous week in 12,468 deals.

The financial services sector, measured by volume, led the activity chart with 1.224 billion shares valued at N9.080 billion traded in 10,213 deals. The consumer goods sector followed with 52.016 million shares worth N3.435 billion in 2,311 deals, the conglomerate sector placed third with a turnover of 41.515 million shares worth N63.506 million in 586 deals.

Trading in Zenith International Bank Plc, Continental Reinsurance Plc and United Bank for Africa Plc, measured by volume, accounted for 738.698 million shares worth N6.910 billion in 4,205 deals, contributing 53.24 per cent and 50.34 per cent to the total equity turnover volume and value respectively.

Bonds

A total of 375 units of Federal Government Bonds valued at N447,055.02 were traded in five deals, compared to a total of 24,850 units valued at N20.533 million transacted last week in six deals.