Lagos — Sentiment was bearish on the Nigerian stocks market in the first week of the month as the market sustained losses on the first three days before staging a mild rebound in the last two sessions.
Consequently, the benchmark All Share Index declined 1.99 per cent week-on-week to close at 32, 459.17 points, reducing the year-to-date gain to 20.78 per cent, while market capitalisation declined N265 billion to close at N11.187 trillion.
Analysts said: "The negative performance was against the backdrop of a rout in Banking stocks and profit-taking across Consumer and Oil and Gas stocks."
Analysts at Cordros Capital said, "The waves of sell-off in the Banking index in the first three trading sessions of the week, with a cumulative loss of 3.73 per cent was driven by reservations concerning the exposure of a syndicate of 13 banks to Etisalat Nigeria, after it was announced that the telecom giant had reconstituted its board with the apex bank mostly in control. While the improved optimism in Dangote Cement, was on the back of a favourable first time rating by Moody's, wherein Dangote Cement local currency corporate rating received a one-notch rating above the Nigeria's sovereign rating."
Sector performance mirrored the broader index as three of five indices closed in the red last week. The Insurance and Industrial Goods indices were the only advancers, up 1.1 per cent and 0.2 per cent respectively. On the other side, the Consumer Goods index declined the most, down 4.03 per cent, Banking index shed 2.2 per cent, while the Oil and Gas index weakened 1.8 per cent.
Market breadth turned negative, with 16 gainers versus 49 losers. Total volume traded declined further by 9.43 per cent to 1.06 billion shares, with Zenith Bank, Transcorp and FBN Holdings accounting for 29.89 per cent of the market volume. On the other hand, the value of trades appreciated by 7.31 per cent to N12.30 billion, with Zenith Bank, Guaranty Trust Bank and Dangote Cement.
On the outlook for the week, analysts at APT Securities and Funds Limited noted, "We expect the market to continue this trading week in a positive stance, though we might see a drop in index towards the end the next trading week to offload gains so far."
Analysts at Afrinvest added that, "With the euphoria which greeted the opening of Investors' and Exporters' window drying up, we expect performance to be more driven by earnings fundamentals in the near term."