At the close of transactions last week, the All-Share Index (ASI) and market capitalisation of the Nigerian Stock Exchange (NSE) depreciated by 1.17 per cent to close the week at 27,306.81 points and N13.307 trillion respectively.
Similarly, all other indices finished lower with the exception of the NSE Industrial Goods index, which appreciated by 1.32 per cent, while NSE ASeM index closed flat.
Analysts attributed the market development to the absence of a clear economic policy direction from the government among other factors.
Specifically, the Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion, said: “Nigeria’s 2019 budget is already under threat with crude oil price trading below $60, at a time of ballooning sovereign debt, while the trade dispute between the U.S and China, the world’s biggest economies continues to escalate.
“The situation is further worsened by the absence of a clear economic policy direction from a government that is seemingly in no hurry to constitute a cabinet, weeks after the Minister-designates were approved by the Senate and eight months into the fiscal year 2019.”
Further breakdown of last week’s transactions showed that a turnover of 1.081 billion shares worth N12.014 billion was recorded in 16,246 deals by investors on the floor of the exchange in contrast to a total of 759.266 million shares valued at N14.038 billion that was exchanged hands in 16,209 deals during the preceding week
The financial services industry (measured by volume) led the activity chart with 900.334 million shares valued at N9.076 billion traded in 8,693 deals; thus contributing 83.3 per cent to the total equity turnover volume.
The conglomerates industry followed with 51.224 million shares worth N64.388 million in 897 deals.
The third place was the consumer goods industry with a turnover of 40.906 million shares worth N946.210 million in 3,090 deals.
Trading in the top three equities namely, Sterling Bank Plc., Guaranty Trust Bank Plc. and Access Bank Plc. (measured by volume) accounted for 511.856 million shares worth N6.133 billion in 2,074 deals, contributing 47.36 per cent to the total equity turnover volume.