Throughout the week, the Nigerian Exchange Ltd. (NGX) broader index fell by 0.08 percent on a weekly basis due to selloffs in 34 other declining shares, including Seplat, Fidelity Bank, and Transnational Corporation.
Interestingly, the market capitalization and NGX All-Share Index closed the week at N56.128 trillion and 99,221.14 respectively, down from N56.172 trillion and 99,300.38 respectively, in the previous week. This represents a 0.08 percent depreciation. Investors in the stock market consequently lost N44 billion every week. With the exception of NGX Main Board, NGX Insurance, and NGX Consumer Goods, which saw increases of 0.08 percent, 0.84 percent, and 0.33 percent, respectively, all other indexes also ended lower.
The NGX Sovereign Bond, NGX Industrial Goods, and NGX ASeM indices, however, closed flat. In the meantime, the price appreciation of 35 stocks during the week was less than that of 45 stocks the week before. A total of 37 stocks had a price decline, up from 25 the week before, and 82 stocks saw no change, down from 84 the week before. In particular, Unity Bank topped the losers’ table by 21.57% to close at N1.20, followed by 13.64% to conclude at N38k per share by Sovereign Trust Insurance.
Sunu Assurances lost 10.85% to close at N1.15, Prestige Assurance lost 10.71 percent to close at N50k a share, and Transnational Corporation lost 11.21 percent to close at N10.30. RT Briscoe led by 25% to conclude at 60k on the gainers’ table, Oando Plc trailed by 23.73% to close at N14.60, and Eterna Plc gained 22.45% to close at N15 per share. Red Star Express Plc gained 15.73 percent to conclude at N3.90 a share, while Deap Capital Management and Trust Plc increased by 20 percent to close at 48k.
Investors on the Exchange traded shares worth N30.495 billion in 37,765 trades this week, compared to 2.189 billion shares worth N31.303 billion that changed hands in 39,362 deals last week. Based on volume, the financial services sector topped the activity table, with 1.222 billion shares worth N15.876 billion exchanged in 18,782 transactions. This made up 52.06% and 71.77% of the total equity turnover value and volume, respectively. In 3,699 transactions, the oil and gas sector came in second with 171.174 million shares valued at N3.549 billion.
The consumer goods sector, with 4,163 deals totaling 116.145 million shares valued at N4.434 billion, secured the third position. Volume-wise, trading in the top three stocks were Veritas Kapital Assurance Plc, Access Holdings Plc, and Fidelity Bank Plc, with 583.809 million shares trading for N5.740 billion across 4,733 deals. This made up 18.82% and 34.28 percent, respectively, of the total equity turnover value and volume.
A mixed trend is anticipated for the upcoming week, according to analysts at Cowry Asset Management Ltd. The analysts anticipated that portfolio rebalancing, corporates’ release of their third-quarter earnings predictions, and profit-taking would be the main drivers of this. They pointed out that with the continuing dividend earnings season providing support, market pullbacks are expected to augment the index’s upside potential. It is anticipated that traders and investors would also position themselves in anticipation of macroeconomic data, such as the May Consumer Price Index. The experts went on, “Investors are advised, nevertheless, to trade in stocks of companies with sound fundamentals.” (NAN)
