…… As Investors Lose Over N455bn In 5 Days
The Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema has said that the capital market lost over 30 billion dollars in market capitalisation to global crude oil slide.
Onyema, who spoke at the NSE 2015 Market Recap and 2016 Outlook on Thursday in Lagos, said that the amount was lost between June 2014 when the slide started and now.
He said that other factors that contributed to the loss apart from the persistent oil fall were volatile foreign exchange, currency slide, macro-economic concerns and political risk.
Onyema said that 2015 was uneasy for the global economy expected to have grown at 3.1 per cent against 3.4 per cent in 2014.
He listed the three biggest contributors to the global slowdown as normalisation of monetary policy by the U.S. Federal Reserve; slump in commodity prices and slowdown in China.
According to him, the global economy is poised for moderate economic growth in 2016.
Onyema said that emerging markets witnessed recession amid weakening oil and other commodity prices.
He said the nation’s economy grew by four per cent in 2015 in spite of weak emerging market growth rates, coupled with domestic security challenges, declining oil prices and volatile currency trend.
This, he said, illustrated the country’s resilience, stressing the need for state-owned enterprises to unbundle to kick-start activities in the market and free cash for other things.
Onyema said that the development would give Nigerians opportunities to have ownership stake in the enterprises.
He added that NSE bond market witnessed increased activities in 2015 with corporate organisations raising the sum of N112 billion or 562 million dollars in the debt market.
Onyema said that the federal and state governments raised N76.5 billion and N35.8 billion in debt capital respectively.
He said the Exchange was committed to ensuring that it provided various classes of products that would enable investors to create well diversified portfolios of uncorrelated assets classes.
Meanwhile, analysis of activities on the Nigeria Stock Exchange (NSE) last week showed that market capitalisation, which represents the total value of securities traded on the NSE declined by over N455 billion to close trading last Friday at N9.295 billion from N9.850 trillion it opened during the first trading day of the year, 2016 .
On Monday market capitalisation shed N93.521billion to close at N9.757 trillion; On Tuesday it dropped by over N93 billion to close at N9.664 trillion; On Wednesday it shed N317 billion to close at N9.347 trillion.
However, on Thursday, market capitalisation rebounded to appreciate by over N30 billion to close at N9.377 trillion, while on Friday market capitalisation declined by over N82 billion to close at N9.295trillion. In the same vein, another stock market gauge, the All Share Index declined by 1,6‘13.86 points or 5.63 per cent in five trading days from 28,642.25 it opened the market to close last Friday at 27,028.39 points.
The breakdown show that the Index on Monday shed 371.93 points to close at 28,370.32 points; On Tuesday the Index declined by 268.18 points to close at 28,102.14 points; On Wednesday it dropped by 911.38 points to close at 27,180.76 points; On Thursday, the index rebounded and went up by 85.42 points to close at 27,266.18.
Further analysis showed that that 899.604 million shares worth N7.669 billion in were traded by investors in 14,164 deals on the floor of the exchange in contrast to a total of 2.965 billion shares valued at N9.364 billion traded penultimate week in 7,174 deals.
The Financial Services Industry (measured by volume) led the activity chart with 764.790 million shares valued at N4.858 billion traded in 8,904 deals; thus contributing 85.01 percent and 63.34 percent 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. The third place was occupied by the Consumer Goods Industry with a turnover of 40.006 million shares worth N1.707 billion in 2,116 deals.
Trading in the top three equities namely – Access Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc.(measured by volume) accounted for 339.027 million shares worth N2.800 billion in 3,116 deals, contributing 37.69% and 36.51 percent to the total equity turnover volume and value respectively.
Also traded during the week under review were a total of 12,016 units of Exchange Traded Products (ETPs) valued at N2.050 million executed in 25 deals, compared with a total of 60,171 units valued at N484,396.36 transacted last week in 20 deals.
Furthermore, Seventeen (17) equities appreciated in price during the week under review, lower than forty-two (42) equities in the penultimate week. Fifty (50) equities depreciated in price, higher than twenty-two (22) equities in the penultimate week, while one hundred and twenty-three (123) equities remained unchanged, lower than one hundred and twenty-six (126) equities recorded in the previous week.
Okomu Oil Palm Company Plc led the top ten price gainers recording 19.64 percent price appreciation. Others are Vono Products Plc (18.52%); Learn Africa Plc (15.49%); Lafarge Africa (8.47%); Cement Company of Northern Nigeria (8.02%); Fidson Healthcare Plc (8.00%); Berger Paints Nig. Plc (5.00%); E-transact International Plc (4.93); Portland Paints and Products Nig. Plc (4.79%) and Ikeja Hotels Plc (4.47%).
Skye Bank Plc led the top ten price losers recording 25.32 percent price loss. Others are Unity Bank Plc (24.11%); Nigerian Breweries Plc (19.49%); Tiger Branded Consumer Goods Plc (16.81%); Honeywell Flour Mills Plc (15.61%); Eterna Plc (13.66%); Union Bank of Nigeria Plc (13.04%); Transnational Corporation of Nigeria (12.50%); Glaxosmithkline Consumer Nig. Plc (12.28%); FBN Holdings Plc (11.89%).
You can read and download this week’s report of trading on the floor of the Nigeria Stock Exchange below