Entry Opportunity for investors as equities decline further

Seven banks fined N1bn for forex offences

Equities investors have an opportunity to enter the market at good valuation as bears depressed prices further last week.
The market, which had gained N148 billion the previous week, shed N603 billion last week following sell pressure that dominated all trading sessions.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) fell 2.93 per cent to close at 38,324.07, while market closed lower at N19.975 trillion. Year-to-date the market has declined by 4.8 per cent.

Following the growth recorded two weeks ago, analysts at Cordros Securities had envisaged profit-taking last week. A development that led to the decline in prices of 41 stocks, compared to only 26 stocks that appreciated. And analysts said the lower prices offer investors a good opportunity to enter the market.

According to the analysts, this week, investors would focus on the outcome of the highly anticipated Monetary Policy Committee (MPC) meeting to gain further clarity on the movement of yields in the fixed income (FI) market.
“Consequently, we see more of a “choppy theme” as cautious trading dominates the market. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings,” they said.

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Meanwhile, investors traded 1.048 billion shares worth N11.543 billion in 17,233 deals in the review week, up from 840. 334 million shares valued at N9.561 billion that exchanged hands in 13,239 deals the previous week.
However, the Financial Services Industry remained the most traded, accounting for 674.741 million shares valued at N5.589 billion traded in 9,405 deals, thus contributing 64.4 per cent and 48.4 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry traded 94.524 million shares worth N630.366 million in 828 deals, while the third place was occupied by ICT Industry, with a turnover of 87.137 million shares worth N630.903 million in 539 deals.
Trading in the top three equities namely Zenith Bank Plc, FBN Holdings Plc and Fidelity Bank Plc accounted for 248.273 million shares worth N3.288 billion in 2,988 deals.

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The 41 price losers were led by C & I Leasing Plc with 18.8 per cent, trailed by Royal Exchange Plc with 18.4 per cent, just as Linkage Assurance Plc shed 13 per cent. SUNU Assurance Plc and Airtel Africa Plc went down by 12.9 per cent and 10 per cent respectively. Other top price losers included: B.O.C Gases Plc (9.9 per cent); Portland Paints and Products Nigeria Plc, Nigerian Enamelware Plc (9.8 per cent apiece); SCOA Nigeria Plc and Julius Berger Nigeria Plc (9.0 per cent).
On the positive side, Eterna Plc led the price gainers with 21.2 per cent, trailed by Prestige Assurance Plc with 15 per cent. Sterling Bank Plc chalked up 12.8 per cent, just as MRS Oil Nigeria Plc and Associated Bus Company Plc gained 11.0 per cent and 10.8 per cent in that order. The Initiates Plc, Seplat Petroleum Development Company Plc and Mutual Benefits Assurance Plc garnered 10 per cent each. Trans-Nationwide Express Plc and Transcorp Hotels Plc appreciated by 9.8 per cent apiece.

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