Stocks listed in the oil and gas, industrial and consumer goods sub sectors on the Nigerian Stock Exchange are daily trailing quoted stocks in other sub sectors as a result of which their sub sectoral indexes are the worst performing on the NSE year to date.
When transactions ended last week, the NSE Oil & Gas Index closed at 302.23 representing -12.35 percent YTD. The NSE Industrial Index closed lower at 1,096.75 as against 1,237.88 at the beginning of the year just as the NSE Consumer Good Index ended the week at 669.53 in contrast to 748.83 and that amounted to -10.59 percent year to date.
The All Share Index (ASI) closed last week at 28,847.81 which is -8.22 percent lower when compared with 31,430.50 on the last trading day of 2018. At -12.35 percent, -11.40 percent and -10.59 percent, the oil & gas, industrial and consumer goods sub sectoral indexes emerged the worst performing indicators on the NSE, implying that their components are among the laggards YTD.
Analysts across the capital market are of the views that while the equity valuations hold much promise for long term investors, there is need for triggers that will stimulate significant interest in the market in the short to medium term.
“Looking ahead, we expect activities in the local bourse to remain tepid in absence of positive triggers that could spur massive buying interest. However, we do not rule out the possibility of intermittent gains in the market on the backdrop of bargain hunting of stocks with relatively cheap prices”, United Capital said in a note to clients.
The NSE Industrial Index has seven stocks as components which are Conoil, Forte Oil, Mobil, MRS, Oando, Total and Seplat. Year to date, only Forte Oil has appreciated, while others have recorded different degrees of depreciation in their prices. Forte Oil closed last week at N34.95 per share which translated to 21.8 percent YTD price appreciation.
On the contrary, Conoil ended the period at N20.10 per share which translated to -13.5 percent returns. Mobil ended at N173 per share translating to -6.7 percent; MRS, -18.9 percent; Oando, -4 percent; Total, 20.2 percent, and Seplat, -18.4 percent.
The NSE Industrial Index has 10 components which are Berger, Betaglass, CAP, CCNN, Cutix, First Aluminium and Meyer. Others are Portland Paint, Dangote Cement and Wapco.
Only First Aluminium, 16.7 percent; Cutix, 12.8 percent; Betaglass, 1 percent are the advancers years to date. Even at that, these stocks control an insignificant amount of the weight of the index. On the other hand Meyer Paints’ share price remained unchanged year to date while CAP, -2.4 percent; Dangote Cement Wapco which are the tow heavyweights in that index shed -5.6 percent and -11.6 percent respectively. Berger, -14.5 percent and CCNN, -21.1 percent are also among the decliners.
The NSE Consumer Goods Index has fifteen stocks as components. These include Cadbury, Champion Breweries, Dangote Flour, Flour Mills, Guinness and PZ. Others are Unilever, Vitafoam, Honeywell, International Breweries, NASCON, Nigerian Breweries, Nestle and Northern Nigerian Flour Mills.
The market capitalisation of equities closed at N10.84 trillion last week Friday, and when compared with N11.72 trillion at the beginning of this year, losses suffered by investors amounted to N878.54 billion.
Meanwhile, the board of AXA Mansard Insurance Plc has announced the departure of Karima Silvent who until last week was a non executive director in the company.
“AXA Mansard Insurance Plc wishes to notify The Nigerian Stock Exchange (The Exchange), esteemed shareholders, stakeholders and the public on the resignation of Karima Silvent, a Non-Executive Director of the Company, with effect from May 8, 2019. The resignation has been unanimously approved by the Board.
The Board and Management of AXA Mansard Insurance Plc commends Karima Silvent for her leadership and overall contribution to the growth of the Company during her tenure on the Board”, a notice sent to the Exchange and signed by Omowunmi Mabel Adewusi, company secretary stated.