Stock Market Misery Enters 7th Week Unabated

Trading in the equities market remained bearish, as sell-offs across all sectors extended the bearish week-on-week streak to its seventh week.
Following last week’s all bear sessions, trading began once again on a negative note as declines recorded in the first three sessions took the consecutive losses to 11 sessions with the biggest loss – a 1.28 per cent drop – coming on Wednesday.
But demand for OANDO, 7UP and Financial Services stocks led to a 0.25 per cent gain on Thursday, the first in the month of July. Subsequently, the Nigerian All Share Index (NSE ASI) dropped 2.15 per cent week-on-week (w/w) to 31,047.99 points, while Market Capitalization lost N208.08billion to close at N10.63trillion. The decline led to an expansion in the Month-to-Date and Year-to-Date losses to 7.20 per cent and 10.41 per cent respectively. Significant sell-offs in Dangote Flour, and flour Mill led to a 4.07 per cent drop in the Consumer Goods index, the biggest loss amongst the five NSE sector indices.
The Oil/Gas and Banking indices followed with respective losses of 2.58 per cent and 1.45 per cent w/w. The Industrial and Insurance indices also declined by 1.12 per cent and 0.86 per cent respectively.
Market breadth worsened as 13 gainers and 57 losers were recorded. 1.19 billion shares worth N20.26 billion were traded in 14,349 deals this week, compared to 1.26 billion shares valued at N15.77 billion that exchanged hands in 17,016 deals the previous week.
Zenith Bank traded11.20 million, Access Bank (72.48 million) and Transcorp (64.05 million) accounted for 55 per cent of the total volume traded this week, while Zenith Bank (N9.39billion), WAPCO (N2.34 billion) and Dangote Cement (N1.87 billion) accounted for 67 per cent of the total value of transactions.
At the inter-bank market, average Nigerian Inter-bank Offer rate (NIBOR) rate dropped 98 basis points (bps) this week to close at 14.28 per cent. The contraction came as a result of inflows from the CBN via maturing Open Market Operation (OMO) bills Thursday. Between Monday and Wednesday, rates increased 64bps as over N100 billion was recalled by the Nigerian National Petroleum Corporation (NNPC), and N44 biliion exited the system via the FGN bond auction. However, inflows via N124 billion worth of maturing OMO notes boosted the liquidity in the banking system. The over-night rate declined 429 bps to 9.46 per cent while the 3-month and 6-month rates dropped 5bps and 11bps respectively. The 1-month NIBOR rate increased 52bps.

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