Equities investors in Nigeria were displeased with the outcome of weekly trading on the floor of the Nigerian Exchange Limited (NGX) as they parted with a net loss of N1.222 trillion last week.
The loss was recorded on 45 stocks after gains seen in 39 other listed securities failed to cushion the sell-off impacts, thus leaving the market breadth for the week in the red region.
Trading data obtained from the NGX showed that the marked regressed from the positive sentiments seen in the previous week with the All Share Index (ASI) this time falling by 2.03% to close at 97,432.02 points from 99,448.91 basis points it opened the week.
Similarly, the aggregate value of listed equities at the NGX lost N1.222 trillion to close lower at N59.039 trillion from N60.261 trillion it had commenced the week.
Subdued investors sentiment was obvious across high-cap securities with notable sell pressures on the shares of Bua Cement, shedding 11.1%; MTN Nigeria, losing 4.9%; First Bank of Nigeria Holding with 6.1% loss; and Aradel Holdings with a moderated share price after shedding 25.5%.
Accordingly, the Month-to-Date and Year-to-Date returns printed -0.2% and +30.3%, respectively.
The ASI and market capitalisation’s decline underscores continued caution among investors, many of whom are taking a risk-off stance amidst fluctuating economic indicators, uncertain earnings outlooks, and ongoing corporate actions.
Persistent liquidity concerns and inflationary pressures appear to have dampened investor enthusiasm, with many awaiting clearer signals on monetary policy and potential fiscal measures before making fresh commitments.
Meanwhile, market activity was mixed, as the total trading volume increased by 17.2% week-on-week, while value declined by 40.4% respectively.
Specifically, investors traded a total turnover of 2.717 billion shares worth N54.632 billion in 46,848 deals during the week in contrast to a total of 2.142 billion shares valued at N85.946 billion that exchanged hands the previous week in 41,217 deals.
Measured by volume, the financial services Industry led the activity chart with 1.821 billion shares valued at N28.958 billion traded in 20,173 deals; thus contributing 67.01% and 53.01% to the total equity turnover volume and value respectively.
The ICT Industry followed with 389.848 million shares worth N6.560 billion in 2,515 deals while the third place was the Conglomerates Industry, with a turnover of 160.993 million shares worth N4.746 billion in 3,623 deals.
Top three equities with highest volume of trade were Fidelity Bank Plc, Chams Holding Company Plc and United Bank for Africa Plc as the trio accounted for 1.225 billion shares worth N17.721 billion in 4,912 deals, contributing 45.10% and 32.44% to the total equity turnover volume and value respectively.
As the new week commences today, investment experts expect choppy trading activities as investors rebalance their portfolios based on the assessment of the Q3 corporate earnings reports released thus far.
“Looking ahead, the market is likely to remain volatile in the near term considering the cautious sentiments of investors.
“However, positive developments, such as improved corporate earnings or stabilising macroeconomic conditions, could help bolster investor confidence and drive a recovery,” analysts at Cowry Assets said.
