As COVID-19 continues to wreak havoc on economic activities across the globe, the Nigerian equities market recorded another bearish outing at the end of last week”s transactions.
Specifically, the All-Share index and market capitalisation plummeting by 3.51 per cent to close the week at 21,094.62 and N10.994 trillion respectively.
All other indices finished lower with the exception of NSE Oil/Gas which appreciated by 2.33 per cent while NSE ASeM Index closed flat.
The pandemic induced bear run has scared away fearful and novice investors from the market, as they sold off their positions at a loss, due to low confidence and weak economic fundamentals.
Moreso, the ongoing remote trading due to lockdown aimed at stemming the spread of the virus has limited participation.
Many stockbroking firms and their clients, especially those that have not perfected the act of remote trading, are struggling to execute trades from remote platforms, due to either inefficiency of their platforms, or a failure to give real online trading education to their clients before now.
Reacting on market performance, the chief operating officer of Investdata Consulting Limited said with more companies notifying the exchange and investing public of its closed period 2020 first-quarter earnings report, the high dividend yields would continue to attract buying interests.
“This is despite the likely continuation of the selloffs, with investors buying to increase their positions in undervalued stocks ahead of dividend declaration.
He added that the current undervalue state of the market offers investors opportunities to position for the short, medium and long-term.
“This why investors should target fundamentally sound, and dividend-paying stocks for possible capital appreciation in the New Year.”
Codros Capital Limited said: “Our view, the trend witnessed this week is likely to persist, as weakened market sentiments are expected to pressure market returns. Nonetheless, we advise investors to take a position in fundamentally justified stocks.”
Further breakdown of last week’s trading showed that a total turnover of 1.534 billion shares worth N11.267 billion was recorded I 18,928 deals by investors on the floor of the exchange.
This is in contrast to a total of 1.452 billion shares valued at N14.918 billion that amwas exchanged in 21,828 deals during the preceding week.
The financial services industry (measured by volume) led the activity chart with 1.105 billion shares valued at N7.100 billion traded in 12,225 deals; thus contributing 71.99 per cent to the total equity turnover volume and value respectively.
The industrial goods followed with 218.471 million shares worth N1.236 billion in 1,610 deals. The third place was the consumer goods industry, with a turnover of 134.599 million shares worth N1.855 billion in 2,332 deals. Trading in the top three equities namely, Sterling Bank Plc, Zenith Bank Plc and Meyer Plc. (measured by volume) accounted for 752.359 million shares worth N3.247 billion in 4,039 deals, contributing 49.03 per cent to the total equity turnover volume and value respectively
A total of 6,759 units valued at N61,035.98 were traded last week in 19 deals, compared with a total of 20 units valued at N130.90 transacted last week in two deals.
Similarly, 10,100 units of Federal Government Bonds valued at N11.145 million were traded this week in 2 deals, compared with a total of 28,527 units valued at N29.950 million transacted last week in 18 deals.
15 equities appreciated at price during the week, lower than 34 in the previous week. 36 equities depreciated in price, higher than 30 equities in the previous week, while 112 equities remained unchanged, higher than 99 equities recorded in the preceding week.