Prior to the 2019 General Elections in Nigeria, concerns about the election has affected transactions of the Nigerian Stock Exchange (NSE) because the market capitalization and the All-Share Index went down in value by 0.4%. The week’s Market Capitalization closed at N11.704 Trillion while the All-Share Index was at 32,058.28 points.
Only the NSE Consumer Goods and NSE Industrial Goods indices experienced an increase in value by 0.04% and 1.02%. The NSE ASeM Index closed at a flat rate while every other indices depreciated.
A record 1.285 billion shares amounting to 11.539 billion was made on the exchange as well which is different from the 1.079 billion shares amounting to N18.196 billion that was gotten the week before.
The activity chart which was measured in volume was topped by the Financial Services Industry, having traded in 7,923 deals; they covered 69.31% of the chart as they incurred 890.433 million shares which amount to N8.113 billion.
Next on the activity chart was the Services Industry; by partaking in 298 deals, they incurred 284.370 million shares which amount to N585.368 million. Coming in third position was the Consumer Goods industry with 44.694 million shares amounting to N 2.054 billion gotten in 2,367 deals.
Diamond Bank Plc, Ikeja Hotel Plc and FBN Holdings Plc who are the top 3 equities on ground traded on 708.003 million shares which amount to N1.758 billion in 1,957 deals making up 55.11% and 15.23% of the total equity value and turnover volume of each.
In the records, 24 equities experienced an increase in price, this is contrary to the 27 equities that appreciated the week before. Also, 36 equities decreased in price contrary to the 39 equities that depreciated the week before. The value of 109 equities remained constant without changing price contrary to the 103 the previous week.
A Cordros Capital Analyst said; “Again, we reiterate our negative point of view for the equities market in the short to medium term, despite the worries rising as a result of the upcoming 2019 General elections and the lack of a positive market trigger. However, positive macroeconomic fundamentals still provides support of recovery in the long term.”
Well known investment banking firm – Afrinvest Securities Limited said: “Despite the total negative results we had this week, we discovered that the buying activity in bellwethers had increased and we look forward to be able to maintain this trend by the next week, as investors wants to invest on the recent attractive pricing in the market. In spite of this, we hope for the broad performance of the index to be weak still as investor sentiments are still influenced by developments in the polity.”
Reports from the GTI Securities said “Since there is no domestic or external shock that can cause a change in sentiment, we are expecting the overall market sentiment to still be tepid by the coming week. Nevertheless, we are also still expecting the recent price hunting noticed in excess especially on bellwether banking stocks to still remain so in the next trading week due to the lowness of their recent prices and vast upside potential.