Capital Market Needs More Support, Says Analysts

• Capital Market Needs More Support, Says Analysts

Analysts at Vetiva Capital Management Limited have said there is a dearth of sustainable catalysts to support the nation’s capital market.

Investors in the market lost a total of N78.1bn last week as the market capitalisation of equities listed on the Nigerian Stock Exchange dropped to N13.154bn on Friday from N13.232bn the previous week.

The All Share Index broke its 30,000 points support level on Monday last week as the losses, which began the previous week, continued, taking the year-to-date losses to -5.02 per cent, compared with a loss of 29 basis points in the corresponding period last year.

During the week, there were days where several sectors closed in the green but their gains were overwhelmed by the negative performance of heavyweights, which dragged the overall performance.

Nestlé Nigeria Limited and MTN Nigeria Communications Plc traded negative, closing at N1,350 and N130, respectively.

A total turnover of 7.476 billion shares worth N91.107bn in 17,192 deals was traded last week by investors on the floor of the Exchange in contrast to a total of 868.739 million shares valued at N15.792bn that exchanged hands the previous week in 12,201 deals.

The financial services industry (measured by volume) led the activity chart with 6.121 billion shares valued at N17.460bn traded in 8,479 deals, thus contributing 81.87 per cent and 19.16 per cent to the total equity turnover volume and value, respectively.

Stocks in the financial services sector remained the most actively traded by value, with Guaranty Trust Bank Plc accounting for a significant portion of it.

The oil and gas industry followed with 1.002 billion shares worth N65.058bn in 2,019 deals.

The Information and Communications Technology industry recorded a turnover of 115.320 million shares worth N3.387bn in 866 deals.

The consumer goods sector was the worst performer last week, down by 164bps week-on-week and with a loss of -19.49 per cent year-to-date.

The banking sector, which appreciated by 253bps week-on-week, and the industrial goods sector, which appreciated by 317bps week-on-week, closed as the best-performing sectors.

Analysts at Vetiva said current share prices still presented an attractive entry point for investors, while analysts at Afrinvest Securities Limited said they expected investors to take positions in fundamentally sound stocks as the half-year earnings season was approaching.