Stock market defies Q1 earnings, slumps by 1.2%

Activities on the floor of the Nigerian Stock Exchange (NSE), last week, showed sustained volatility, with almost four days of bearish transactions, despite the influx of first quarter (Q1) earnings’ reports submitted by listed companies.

Specially, the All-Share Index depreciated by 1.15 per cent, while market capitalisation depreciated by 1.09 per cent to close the week at 29,740.41 points and N11.18 trillion respectively.

Similarly, all other indices finished lower, except the NSE Oil/Gas Index that rose by 0.43 per cent.

Analysts attributed the lingering downturn to low valuation and prolonged market slide, induced by investors’ apathy ahead of government’s expected economic reforms and 2019 budget not yet passed by the National Assembly.

According to them, the changing market dynamics at this time is seeking external and internal stimuli to enhance real recovery.

However, they maintained that equity prices remain attractive and cheap for new entrants, as portfolio rebalancing in Q1 scorecards continue.

The Chief Research Officer of Investdata Consulting, Ambrose Omodion, said: “Blue-chip stocks that have suffered losses before now, but have potentials of rebounding on the strength of its fundamentals and the sector or industry operation should be the target of market players now.”

It was a four-day trading as the Federal Government declared Monday, April 22, 2019 as public holiday to commemorate Easter Celebration.

Meanwhile, a turnover of 1.432 billion shares worth N15.089 billion was recorded in  15,342 deals on the floor of the exchange in contrast to a total of 988.692 million shares valued at N11.432 billion that changed hands in 13,596 deals during the preceding week.

The financial services industry (measured by volume) led the activity chart with 587.373 million shares valued at N5.092 billion traded in 8,210 deals, thus contributing 41.02 per cent  to the total equity turnover .

The oil and gas industry followed with 326.457 million shares worth N430.320 million in 1,670 deals.

The third place was construction/real estate industry with a turnover of 218.458 million shares worth N4.326 billion in 118 deals.

Trading in the top three equities namely, Japaul Oil & Maritime Services Plc, Julius Berger Nigeria Plc and United Bank for Africa Plc (measured by volume), accounted for 628.055 million shares worth N671.387 million in 1,810 deals, contributing 43.86 per cent to the total equity turnover volume.

A total of 4,800 units of Exchange Traded Products (ETPs) valued at N45,578.70 was executed in nine deals during the week. No trade was recorded in the previous week.

A total of 41,150 units of Federal Government Bonds valued at N43.977 million was traded last week in 11 deals, compared with a total of 14,246 units valued at N14.980 million transacted in 17 deals, the previous week.

Also, 30 equities appreciated in price during the week, lower than 33 in the previous week and 40 equities depreciated in price, higher than 33 equities of the previous week, while 97 equities remained unchanged, lower than 101 equities recorded in the preceding week.