In what can be regarded as a quiet trading week, the local bourse traded within tight bands before settling at 46,964.23 basis points after it lost 0.67 per cent week on week.
The negative performance was due to bouts of profit-taking activities in heavyweight stocks.
Stocks that led the bear charge include NESTLE with -2.8 per cent loss; UBA with -2.6 per cent decline; GTCO with -1.4 per cent dip, MTN Nigeria with -0.7 per cent fall; and LAFARGE with 0.6 per cent negative return at the close of the week.
This bear pressure on the NGX All-share Index amounted to N172 billion losses for equity investors at the local bourse as market capitalisation of stocks closed lower at N25.311 trillion from N25.483 trillion last week.
Based on the preceding, the month-to-date (MTD) and year-to-date (YTD) returns settled at -0.9 per cent and +9.9 per cent, respectively.
Activity levels were weaker than the prior week, as trading volumes and value declined by 52.0 per cent and 19.6 per cent in that order.
Sectoral performance was bearish as the Insurance index shed -1.4 per cent to lead the laggards, followed by the Consumer Goods index with -1.1 per cent and Banking index lost -0.7 per cent. The Industrial Goods and Oil and Gas indices closed flat.
What market analysts are saying
In the week ahead, experts envisaged that the market will trade sideways as the activities of bargain hunters in dividend-paying stocks fizzle out due to the winding down of the 2021 Full Year earnings season.
In addition, risk-averse investors will likely sustain profit-taking activities in anticipation of an uptick in fixed income yields.
“Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings,” say analysts are Cordros Capital Limited.
The Weekly Trading Data
During the week under review, a total turnover of 1.176 billion shares worth N16.601 billion in 21,076 deals was traded by investors on the floor of the Exchange, in contrast to a total of 2.449 billion shares valued at N20.653 billion that exchanged hands last week in 20,764 deals.
The Financial Services Industry (measured by volume) led the activity chart with 954.472 million shares valued at N10.217 billion traded in 12,700 deals; thus contributing 81.14 per cent and 61.55 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 63.728 million shares worth N3.439 billion in 2,720 deals while the third place was The Conglomerates Industry, with a turnover of 53.313 million shares worth N258.568 million in 711 deals.
Trading in the top three equities namely Fidelity Bank Plc, United Bank For Africa Plc, and Guaranty Trust Holding Company Plc (measured by volume) accounted for 456.971 million shares worth N4.469 billion in 4,982 deals, contributing 38.85 per cent and 26.92 per cent to the total equity turnover volume and value respectively.
Meanwhile, 24 equities appreciated in price during the week, higher than 21 equities in the previous week.
On the flip side, 44 equities depreciated in price, lower than 45 equities in the previous week, while 88 equities remained unchanged lower than 90 equities recorded in the previous week.
Other segments
At the exchange traded product wing, investors traded a total of 29,855 units valued at N3.456 million were traded this week in 11 deals compared with a total of 70,961 units valued at N9.123 million transacted last week in 28 deals.
In fixed income segment of the market, investors traded a total of 10,273 units of bonds valued at N10.494 million in five deals compared with a total of 60,695 units valued at N63.551 million transacted last week in 15 deals.
