Performance of the local stock market again ended in the red territory last week leading to N114 billion loses for stock investors whose participation at the market was at a low ebb during the week.
With last week as another round of bearish blow on the equity investment in the country, the All-Share Index (ASI) that tracks price movement in the market fell by 0.45 per cent to close lower at 46,631.46 basis points while market capitalization closed at N25.139 trillion, lower than N25.253 trillion it opened the week.
The negative performance did not spare trade turnover which remained tepid with withdraw of interests by investors, compared with the previous level as traded volume and value declined by 11.79 per cent and 20.18 per cent respectively.
Business Metrics recalls that the negative outlook recorded last week marked the fifth consecutive week of red closing for investors while the bears have refused to let go of the NGX trading floor.
The latest turn of weekly losses was particularly driven by profit-taking activities in bellwethers leading to -8.9 per cent loss in NASCON; -2.7 per cent fall in WAPCO; -3.3 per cent decline in FBNH; and -1.9 per cent price depreciation in the shares of DANGSUGAR.
While the Consumer Goods, industrial goods and insurance indices dipped by -0.4 per cent, -0.4 per cent and -0.2 per cent in that order, the Oil and Gas and banking sectors managed to rise above the general outlook to post 3.1 per cent and 1.5 per cent gains.
Commenting on the development, analysts envisaged that with the moderation in the prices of bellwether stocks this week, savvy investors are expected to take advantage of this and make re-entry ahead of Q1-22 earnings announcements.
“Considering that the 2021FY earnings season has run its course, we now expect investors’ sentiment to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed income space.
“Overall, we advise investors to take positions in only fundamentally sound stocks as the weak macro story remains a significant headwind for corporate earnings,” analysts at Cordros Capital analysts said in a note available to Business Metrics on Sunday.
Trading figures for the week
During the week under review, a total turnover of 1.137 billion shares worth N10.812 billion in 23,471 deals was traded by investors on the floor of the Exchange, in contrast to a total of 1.289 billion shares valued at N13.546 billion that exchanged hands last week in 22,118 deals.
The Financial Services Industry (measured by volume) led the activity chart with 798.246 million shares valued at N6.732 billion traded in 12,904 deals; thus contributing 70.23 per cent and 62.26 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 155.154 million shares worth N228.975 million in 917 deals and the third place was the Consumer Goods Industry, with a turnover of 45.341 million shares worth N1.013 billion in 2,819 deals.
Meanwhile, trading in the top three equities namely Fidelity Bank Plc, Transnational Corporation Of Nigeria Plc, and Zenith Bank Plc (measured by volume) accounted for 454.800 million shares worth N2.551 billion in 4,587 deals, contributing 40.01 per cent and 23.60 per cent to the total equity turnover volume and value respectively.
At the ETP segment, investors traded a total of 76,043 units valued at N1.251 million were traded during the week in 31 deals compared with a total of 4,448 units valued at N478,868.63 transacted last week in 23 deals.
The fixed income part of the NGX witnessed a total of 21,314 units of bonds valued at N22.012 million in the week in 12 deals compared with a total of 35,517 units valued at N39.252 million transacted in the previous week in 16 deals.
