The market capitalisation of equity investments at the Nigerian Exchange Limited (NGX) has further moderated to N25.475 trillion in response to profit-taking pressure from investors.
This was as the benchmark index that tracks share prices in the market dips marginally by 0.13 per cent to close the week at 47,268.61 basis points, while month-to-date (MtD) and year-to-date (MtD) returns of the index moderated to -0.3 per cent and +10.7 per cent respectively
Although the local bourse opened the week on a strong footing, the bullish momentum lost steam as investors took a breather later in the week to digest corporate earnings released thus far.
Midweek selloffs undermined the market performance and particularly, intense profit-taking activities witnessed in INTBREW (-9.1 per cent), WAPCO (-8.8 per cent), NASCON (-8.3 per cent), DANGSUGAR (-7.7 per cent), UBA (-5.2 per cent), and GUINNESS (-4.4 per cent) drove the weekly loss.
In terms of activity levels, trading volume declined by 17.2 per cent, while trading value grew by 22.8 per cent.
Specifically, a total turnover of 1.374 billion shares worth N23.786 billion in 28,809 deals was traded in contrast to a total of 1.668 billion shares valued at N19.481 billion that exchanged hands the previous week in 25,979 deals.
On sectors, the Oil and Gas index closed positive by +10.6 per cent to emerge the only advancer while the Banking shed -2.7 per cent, followed by Consumer Goods with -1.7 per cent, Industrial Goods and insurance indices with -0.7 per cent, -0.2 per cent.
Speaking on the performance, investment analysts at Cordros Capital envisage that investors will take advantage of the significant moderation in the share prices to make a re-entry in dividend-paying stocks in the week ahead.
“However, we envisage a zig-zag pattern as intermittent profit-taking activities will likely persist due to medium-term expectations on the direction of yields in the Fixed Income market.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” they said in a note made available to Business Metrics.
Data Distribution
According to the weekly trading figures obtained from the NGX, the financial services industry (measured by volume) led the activity chart with 889.542 million shares valued at N8.036 billion traded in 14,034 deals; thus contributing 64.74 per cent and 33.78 per cent to the total equity turnover volume and value respectively.
The conglomerates industry followed with 131.154 million shares worth N199.272 million in 1,259 deals, while the third place was the ICT industry, with a turnover of 89.777 million shares worth N10.593 billion in 2,119 deals.
Trading in the top three equities namely FCMB Group Plc, Transnational Corporation of Nigeria Plc and Zenith Bank Plc (measured by volume) accounted for 416.676 million shares worth N2,989 billion in 3,321 deals, contributing 30.32 per cent and 12.57 per cent to the total equity turnover volume and value respectively.
Momentum in ETF, bonds
Elsewhere, at the exchange traded fund (ETF) segment of the bourse, a total of 1.586 million units of valued at N24.867 million were traded in 22 deals compared with a total of 1,622 units valued at N775,980.88 transacted the previous week in 27 deals.
Meanwhile, a total of 136,800 units of bond valued at N149.010 million were traded during the week in 23 deals compared with a total of 67,646 units valued at N76.346 million transacted during the previous week in 11 deals.
