Following losses recorded in medium and large capitalized stocks including Guaranty Trust Bank, Dangote Flour Mills, Zenith Bank, United Bank for Africa (UBA), and Lafarge Africa, Equities recorded a downturn at the Nigerian Stock Exchange amidst negative sentiments amongst investors.
The NSE All-Share Index and Market Capitalization both depreciated by 0.32% to close the week at 26,448.62 and N12.875 trillion respectively. Similarly, all other indices finished lower with the exception of NSE Insurance, NSE Meri Value and NSE Consumer Goods.
A total turnover of 896.610 million shares worth N16.561 billion in 12,638 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.409 billion shares valued at N31.959 billion that exchanged hands the previous in 13,616 deals.
The Financial Services industry (measured by volume) continues to lead the activity chart recording 597.154 million shares valued at N6.721 billion traded in 7,197 transactions. Thus contributing 66.60% and 40.58% to the total equity turnover volume and value respectively.
The Consumer Goods industry followed with 102.130 million shares worth N7.214 billion in 2,027 deals. The third place was Service industry with a turnover of 84.001 million shares worth N377,017 million in 264 deals.
Trading in the Top Three Equities namely, Guaranty Trust Bank Plc, Global Spectrum Energy Services Plc and Flour Mills Nigeria Plc. (measured by volume) accounted for 302.285 million shares worth N5.510 billion in 1,290 deals, contributing 33.71% and 33.27% to the total equity turnover volume and value respectively.
Economy
Following the announcement Last week by the federal government of the complete closure of all land borders against earlier partial closure, prices of food has inched higher in October, as economic activities continue to decline further.
As a result, Economy watchers are less optimistic about growth over the rest of the year as consumer spending is likely to remain weak; real wage growth is likely to move further into negative territory in the absence of the new minimum wage implementation and amidst high inflationary pressures.
Earlier in the year in view, with the recently released GDP (expenditure approach) data showing that the economy grew slower by +2.4% in the last quarter of 2018, household consumption which constitutes 60% of the total GDP weakened by 890bps to 1.4% y/y, the slowest since Q3 2018.
Money market
The overnight (OVN) rate undulated during the week, before settling lower by 6.57 ppts at 5.86%. On the first trading day, the rate settled 4.36ppts higher at 16.8% as system liquidity thinned out.
However, by the second trading day, the rate moderated by 7.65ppts, before then further paring by 12.00ppts on the following trading day to 4.8%, following CRR refunds to banks by the CBN. On the penultimate trading of the week, the rate increased by 8.36ppts to 13.14%, despite inflows of NGN463.98 billion from OMO maturities, as investors looked to re-invest in an OMO auction called by the CBN on the same day.
Meanwhile, during the week, the CBN gave banks a directive to cease sales to clients with outstanding loans with any bank, as well as corporates which were benefitting from CBN intervention funds.
