The Nigerian stock market continued its downward slide last week as various government pronouncements and ensuing press statements about decisions not to inject funds into the stock market has further impaired investors’ confidence. Consequently, the NSE All-Share Index dropped by 4.06% to close the week at 21,003.42 points compared with a drop of 6.35 % in the previous week. see the stock market update, currency and exchange update March 17, 2009
The Market capitalization also dropped by 4.07 % to close the week at N4.7 trillion as against N4.899 trillion in the previous week. The volume of shares traded however, rose by 1.79% to 1.56 billion as against1.54 billion in the previous week, while the value traded dropped by 32.72% to N6.34 billion, compared to N9.42 billion in the preceding week.
In line with the entire market direction, all the 4 sectoral indices depreciated further.
Specifically, the NSE Banking Index dropped by 5% to 332.39 points, the NSE Insurance Index dropped by 5.6% to 434.10, while the NSE Food/Beverage Index and the NSE Oil/Gas Index dropped by 1.7% and 9.7% to close at 433.97 and 334.94 points respectively.
The Banking sub-sector was the most active as investors’ traded 748.43 Million shares valued at N4.2billion in 14,556 deals. Volume in the banking sub-sector was driven by activities in the shares of FirstInland Bank Plc and Access Bank Plc.
Trading in the shares of the two banks accounted for 347.34 million shares, representing 46.41% of the sub-sector’s turnover. The Insurance sub-sector followed, boosted by activities in the shares of Investment and Allied Assurance Plc and Guinea Insurance Plc with a turnover of 574.31 million shares valued at N440.95 million in 2,421deals. 20 stocks appreciated in price during the week, lower than 22 in the preceding week while 80 stocks depreciated in price lower than 85 in the preceding week.
Guinness Nigeria Plc led the gainers’ chart with a gain of N3.00 to close at N86.00 per share while, BOC Gases Plc followed with N1.58 to close at N17.13 per share. On the other hand, two petroleum stocks occupied the top position on the decliners’ table led by Mobil Oil Nigeria Plc with a decrease of N28.46 to close at N125.05 per share. African Petroleum Plc followed with a loss of N15.92 to close at N69.99 per share.
MARKETOUTLOOK
The market mood will continue to be affected by liquidity drought and high interest rates. However, the liquidity position will begin to improve as soon as the Federal Government begins to Release capital votes for the year. In the meantime, buy opportunities continue to exist for stocks with good fundamental.