NSE: Domestic transactions dropped by 66.68% in 12 years

NSE: Market capitalisation closes upbeat, rises N53bn
Written by Maritime First

…Though Equities market rebound by N133bn, Wednesday***

Though the Nigerian equities market on Wednesday rebounded with N133 billion after two days of consecutive downward trend, it did not obliterate the records that domestic transactions in the Nigerian Stock Exchange (NSE) in the last 12 years have consistently declined by 66.68 per cent, reflecting a slide to N1.18 trillion in 2018 from N3.55 trillion in 2007.

Domestic transactions in the Nigerian Stock Exchange (NSE) has declined by 66.68 per cent in 12 years, the exchange said in its Domestic and Foreign Portfolio Investment (FPI) report released on Wednesday noting specifically the slide to N1.18 trillion in 2018 from N3.55 trillion in 2007.

The exchange said that foreign transactions during the same period rose by 97.88 per cent to N1.22 trillion compared with N616 million in 2007.

In the same vein, total foreign transactions stood at 51 per cent, while domestic transactions accounted for 49 per cent in 2018.

The NSE added that total transactions increased to N121.99 billion (about 398.0 million dollars) in August 2019.

It said that the figure represented a growth of 7.51 per cent when compared with N113.47 billion or 370.4 million dollars posted in July 2019.

Furthermore, the total value of transactions executed by foreign investors in August 2019 outperformed that of domestic investors by four per cent.

Specifically, foreign participation stood at 52 per cent compared with domestic participation of 48 per cent in August.

NAN also reports that foreign inflow stood at N34.92 billion against domestic inflow of N26.45 billion in the same period.

Further analysis shows that foreign outflow in August stood at N29.98 billion in contrast with domestic outflow of N31.64 billion in the same review period.

Also read:  NSE: Market bearish, Airtel leads losers pack as investors forfeit N81bn

Meanwhile, the Nigerian equities market on Wednesday rebounded with N133 billion after two days of consecutive downward trend.

Specifically, the market capitalisation which opened at N13.342 trillion inched N133 billion or one per cent to close at N13.457 trillion.

Also, the All-Share Index surged 274.57 points or one per cent to close at 27,681.61 against 27,407.04 achieved on Tuesday.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are Stanbic IBTC Holdings, Guaranty Trust Bank, MTN Nigeria, Ecobank Transnational Inc. (ETI) and Lafarge Africa.

Analysts at Afrinvest Limited said that “ in the absence of any major stimulus, we expect a bearish performance for the rest of the week.

“Nonetheless, we see opportunities for bargain hunting in stocks with sound fundamentals,” they said.

Market breadth closed positive with 24 gainers against 13 losers.

Cutix and ETI recorded the highest price gain of 10 per cent, each to close at N1.54 and N8.80 per share, respectively.

University Press followed with a gain 9.52 per cent to close at N1.15, while Wapic Insurance appreciated by 8.82 per cent to close at 37k.

Associated Bus Company appreciated by 8.33 per cent to close at 39k per share.

On the other hand, Champion Breweries led the losers’ chart by 8.80 per cent, to close at N1.14 per share.

RT Briscoe followed with a loss of 6.90 per cent to close at 27k, while Lasaco Assurance lost 6.67 per cent to close at 28k per share.

AIICO Insurance lost 5.88 per cent to close at 64k, while Courteville Business Solutions shed 4.76 per cent to close at 20k per share.

Also, the volume of shares traded rose by 91.64 per cent to 379.51 million shares worth N5.35 billion achieved in 3,923 deals.

This was in contrast with a turnover of 198.03 million shares valued at N2.89 billion exchanged in 3,830 deals on Tuesday.

Guaranty Trust Bank topped the activity chart with 98.42 million shares worth N2.83 billion.

Access Bank came second with 40.73 million shares worth N314.47 million, while FBN Holdings traded 40.08 million shares valued at N216.63 million.

FCMB Group sold 20.05 million shares worth N33.87 million, while Sterling Bank accounted for 17.58 million shares valued at N38.81 million.


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Maritime First