NSE: Investors’ cumulative gain dips by 5.6% in first week of 2016

Nigeria Stock Exchange trading floor

Investors’ cummulative returns on investment at the Nigerian bourse dipped by 5.6 per cent, an all time low in 2016, as first week trading closed on Friday.

At the end of trading, the Nigerian Stock Exchange’s All-Share Index fell by 1,613.86 points.

The market capitalization or the cumulative net worth of listed securities also dipped by N555 billion to close at N9.296 trillion.

In the same vein, all other sectoral indices finished lower in the week ending January 8, 2016, with the exception of the NSE Industrial Goods Index that rose by 0.45 per cent to close at 2,176.44 points.

Nigerian Breweries led the price losers, shedding N26.50 to close at N109.50 per share.

GlaxoSmithkline share price depreciated by N4.20 to close at N30 while Union Bank lost 90k to close at N6 per share.

Earlier, Larfage Africa price gained, chalking up N8.20 to close at N105 per share.

Okomu Oil share price appreciated by N5.95 to close at N36.2 while Cement Company of Northern Nigeria gained 75k to close at N10.10 per share.

An analysis of the weekly trading showed that the Financial Services Industry (measured by volume) attracted the highest attention with 764.790 million shares valued at N4.86 billion traded in 8,904 deals.

The financial services industry also accounted for 85.01 per cent and 63.34 per cent to the total equity turnover volume and value respectively.

A further breakdown activities in the financial services industry indicated that Access Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc (measured by volume) accounted for 37.69 per cent and 36.51 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 40.164 million shares worth N100.471 million in 626 deals while the Consumer Goods Industry accounted for 40.006 million shares worth N1.707 billion traded in 2,116 deals.

Also traded in the period were 12,016 units of Exchange Traded Products (ETPs) valued at N2.050 million executed in 25deals.

Overall, 899.604 million shares worth N7.669 billion were traded in the week under review by investors in 14,164 deals on the NSE compared with 2.965 billion shares valued at N9.364 billion that exchanged hands the perious week in 7,174 deals.

Meanwhile, some dealers told PREMIUM TIMES that the sharp decline in returns on investments in the first week of transactions stemmed from a potpourri of events internationally and locally.

Steve Idia, an investment adviser said that the sustained free fall of crude oil price and the in ability of OPEC to arrest the trend were sipping dangerously into the emerging economies.

Mr. Idia said Nigeria’s portfolio investment terrain was worst affected because most of the quoted companies which recorded double digit losses were yet to locate their bearing under the new government economic blue print.

“So the pressure on the NSE is both foreign and domestic and it will continue like that until the federal Government float a peculiar policy to amerlorate financial and economic challenges facing the real sector,” Mr. Idia said.

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