On speculation that foreign investors’ exist as a result of alleged easing of US Federal Reserve’s Stimulus Package among others, the twin market performance indicators on the Nigerian Stock Exchange (NSE), the all share index and the market capitalisation last week finished on the red as both lost well over 5 per cent respectively.
In specific terms, the all share index otherwise called the composite index closed at 36,4644.39 basic points from an opening of 37,249.93 basis points while the market capitalisation of listed equities finished at N11.71 trillion from an opening value of N11.97 trillion.
The first trading day on the Nigerian bourse during the week under review finished on a negative note having recorded 0.44 percent lost. The bears’ hold on the market continued the next day as the market dipped further by 0.16 percent.
The bulls took over on Wednesday as the market garnered 0.30 percent on the strength of highly capitalised stocks.
The bears took over the market on Thursday as the market depreciated by 0.46 percent while on Friday it recorded a further plunge of 1.35 percent.
A total of 1.63billion units of shares worth N21.68billion were exchanged by investors in 30,952 transactions. The week’s activity chart was led by the financial service sector having recorded a turnover of 1.10 billion units of shares valued at N10.55 billion traded in 16,479 deals which represents 67.67 percent, 48.67 percent and 53.24 percent of the overall traded volume, value and deals respectively.
The conglomerate sector emerged second on the activity chart with a turnover volume of 141.20 million units of shares valued at N412.13 million in 1,046 deals contributing 8.6 percent, 1.90 percent and 3.38 percent of the total equity turnover volume, value and deals in that order.
The Consumer Goods Sector came third with a recoded turnover volume of 141.02 million units of shares at the cost of N8.10 billion traded in 6,365 transactions.
According to the NSE weekly report transactions in the shares of Zenith Bank Plc, Sterling Bank Plc and Transactional Corporation of Nigeria Plc accounted for 419.40 million units of shares worth N3.542 billion in 3,173 trades contributing 25.72 percent, 76.34 percent and 10.25 percent to the overall equity market turnover volume, value and deals respectively.
A total of 32 stocks appreciated in their prices during the week under review while 49 stocks depreciated in their prices and 112 share prices remained unchanged.
Meanwhile, major equity markets around the globe were upbeats as their indices gained marginally. The NASDAQ, S $ P500 and Dow Jones rose by 1.26 percent, 1.02 percent and 0.78 percent respectively during the review week.
In Europe, the German Dax, FTSE100 and France CAC 40 increased by 0.66 percent, 0.78 percent and 1.20 percent respectively.
Nikkei 225 rose by 4.57 percent while Hangbeng and BSE Sensex, all in the Asia Pacific region increased by 2.4 percent and 0.57 percent in that order.
Those on the downside were Brazilian Bovespa which reduced by 2.62 percent while Russia’s RTS Index dropped by 0.68 percent.
The Federal Government of Nigeria (FGN) bonds to be issued during the third quarter of 2013 will range between N140 billion and N250 billion according to Debt Management office (DMO) calendar.
In comparism with a range of N200 billion to N280 billion issued during the corresponding period in 2012, the range was on the downside though the actual bond issued was N210 billion.
The DMO stated that, in the next quarter, the 5-year and 20-year bonds would be reopened even as a new 3-year bond would be issued.
The Treasury bill calendar revealed that a total of N751 billion worth of bills across all maturities are to be issued during the third quarter of this year meanwhile the actual amount of treasury bills issued during the third quarter of 2012 was N1.538 billion.
According to market analysts, the drop in the amount of FGN bonds to be issued reflects government’s plan to reduce domestic borrowing.
The over the counter bond market last week saw more sell off than bargain hunting as the 20-year, 10 percent FGN July 2030 instrument dipping by N0.69 while yield rose to 13.29 percent from 13.69 percent. The 10-year 7 percent FGN October 2019 paper depreciated by N0.54 even as yield surged from 13.01 percent to 13.18 percent. The 5-year 4 percent FGN April 2015 bond tanked by N0.07 having yield rose from 13.41 percent to 13.56 percent.
On the flipside the 7-year 9.25 percent FGN September 2014 debt paper gained N0.01 even as the yield declined from 13.39 percent to 13.44 percent.