As investors scrambled to book profit on their equity assets last week, the local stock market was pulled down by 0.12 per cent to close the week in the red territory.
This newspaper reported that the domestic stock market soared significantly in the previous week; gaining N646 billion and this led to the pullback recorded to profit-taking in four of the five trading sessions last week
As the bearish sentiments dominated the local bourse, the All-Share index declined by 0.12 week-on-week to settle at 43,199.27 basis points, with the month-to-date (MTD) and year-to-date (YTD) return settling at 2.8 per cent and 7.3 per cent, respectively.
Similarly, market CAP shed N18 billion to close the week lower at N22.554 trillion as against N22.572 trillion the preceding week.
Notably, profit-taking in Total Plc, GTCO, FirstBank of Nigeria Holdings and Nigerian Breweries were the main culprits for the negative sentiment as their share prices fell by -9.9 per cent, -7.5 per cent, -3.7 per cent and -2.8 per cent respectively.
Sectoral performance was broadly bearish as all sectors closed in the red. The Oil and Gas index shed-3.6 per cent to lead the bear rampage, followed by Banking with -1.6 per cent loss. The consumer goods index trailed with -1.4 per cent, while Insurance and industrial goods indices fell -0.5 per cent and -0.1 per cent respectively.
Activity levels were mixed, as trading volumes declined by 4.8 per cent week-on-week while value grew by 33.4 per cent.
Specifically, a total turnover of 1.392 billion shares worth N27.886 billion in 19,990 deals were traded during the week by investors on the floor of the Nigerian Exchange Limited (NGX), in contrast to a total of 1.471 billion shares valued at N20.941 billion that exchanged hands in 20,410 deals.
“In the week ahead, we expect a mixed market performance as the bulls and bears are likely to be in a gridlock due to the opposing forces of bargain-hunting activities in stocks with attractive dividend yields ahead of 2021FY dividend declarations and intermittent profit taking activities,” say analysts at Cordros Capital Limited. “Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”
Trade distribution
During the week under review, the Financial Services Industry (measured by volume) led the activity chart with 1.082 billion shares valued at N11.579 billion traded in 11,612 deals; thus contributing 77.72 per cent and 41.52 per cent to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 105.796 million shares worth N11.831 billion in 2,657 deals. The third place was The Conglomerates Industry, with a turnover of 56.136 million shares worth N73.687 million in 575 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Holding Company Plc and Sterling Bank Plc (measured by volume) accounted for 638.319 million shares worth N8.542 billion in 4,116 deals, contributing 45.85 per cent and 30.63 per cent to the total equity turnover volume and value respectively.
Investors in the exchange traded funds (ETFs) segment traded a total of 54,936 units valued at N481,455.15 in 19 deals compared with a total of 23,297 units valued at N792,386.34 transacted the previous week in 34 deals.
Similarly, the bond market saw trading of 65,606 units valued at N68.507 million in nine deals compared with a total of 56,655 units valued at N60.795 million that exchanged hands previously in 26 deals.
