Mixed Trading Seen as Investors Await More Results

• Mixed Trading Seen as Investors Await More Results

Trading at the nation’s stock market is expected to be mixed this week, as investors expect the filing of annual financial statements by companies that missed the March 31, 2018 deadline.

Some of the companies, including Presco Plc, A.G. Leventis (Nigeria) Plc, FBN Holdings Plc, Diamond Bank Plc, and Linkage Assurance Plc, gave the reasons for the delay last week.

The equities segment of the Nigerian Stock Exchange finished lower last week, as all market indices closed in negative territory.

The NSE All-Share Index and market capitalisation fell by 1.60 per cent to close the week at 40,841.14 basis points and N14.753tn respectively.

A total turnover of 1.765 billion shares worth N26.562bn in 20,265 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.328 billion shares valued at N28.927bn that exchanged hands in 25,530 deals the previous week.

The financial services industry (measured by volume) led the activity chart with 1.468 billion shares valued at N18.707bn traded in 12,850 deals, thus contributing 83.18 per cent and 70.43 per cent to the total equity turnover volume and value respectively.

The conglomerates industry followed with 127.882 million shares worth N623.871m in 971 deals.

The third place was occupied by the consumer goods industry with a turnover of 69.868 million shares worth N6.189bn in 2,930deals.

Zenith International Bank Plc, Access Bank Plc and United Bank for Africa Plc (measured by volume) were the most traded equities for the week, accounting for 543.758 million shares worth N9.739bn in 3,533 deals.

The three stocks contributed 30.81 per cent and 36.66 per cent to the total equity turnover volume and value, respectively.

Also traded last week were a total of 125,282 units of Exchange Traded Products valued at N2.835m executed in 11 deals, compared with a total of 15,293 units valued at N254,840 that was transacted in 16 deals the previous week.

Nineteen equities appreciated in price last week, lower than 40 of the previous week. Fifty-three equities depreciated in price, higher than 40 equities of the previous week, while 99 equities remained unchanged higher than 91 equities recorded in the preceding week.

Experts at Vetiva Capital Management Limited noted that the equity market closed 421 basis points lower last month, and continued in the negative territory at the start of the second quarter.

“Notwithstanding the negative close for the week, we highlight that market sentiment was more upbeat at week close and as such we foresee further mixed trading with a mild positive tilt at week open,” they said.

Commenting on the consumer goods industry, the Vetiva experts maintained their expectation of more intense competition across the industry this year.

“Also, we expect abating cost pressures to provide a leeway for further price cutting as the companies look to support volume growth within the year.”