Equities market dips by 2.94%, loses N1.45trn W-o-W
BY TEMITOPE ADEBAYO
The Nigerian stock market closed the week on a bearish note, recording declines in three out of five trading sessions. The All-Share Index (ASI) fell by 2.94 per cent Week-on-Week (W-o-W) to settle at 102,353.68 points, while market capitalisation dropped by N1.45 trillion to close at N62.851 trillion.
Sectoral performance was largely underwhelming, with the NGX Consumer Goods index emerging as the only bright spot, gaining 1.33 per cent week on week. In contrast, the NGX Industrial Goods and NGX Insurance indices suffered the sharpest declines, shedding 8.20 per cent and 6.23 per cent, respectively. Similarly, the NGX Oil & Gas and NGX Banking indices recorded losses of 0.78 per cent and 0.46 per cent, respectively.
The market breadth remained negative, with 57 equities declining in price compared to 33 gainers, while 62 equities closed flat. NEIMETH International Pharmaceuticals led the gainers’ chart, appreciating by 31.42 per cent to close at N3.43 per share. SCOA Nigeria followed with a 20.39 per cent gain to close at N2.48, while Northern Nigeria Flour Mills rose by 19.54 per cent to end the week at N54.45 per share.
On the flip side, Universal Insurance topped the losers’ table, dropping by 19.23 per cent to close at 63 kobo per share. Royal Exchange trailed with a decline of 18.35 per cent, settling at 89 kobo per share, while Regency Assurance lost 17.78 per cent to close at 74 kobo per share.
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Trading activity also slowed, as investors exchanged 2.252 billion shares worth N58.831 billion in 63,657 deals, compared to 4.698 billion shares valued at N85.043 billion traded in 72,562 deals the previous week.
The Financial Services sector led the activity chart, accounting for 1.371 billion shares worth N22.274 billion in 26,114 deals, contributing 60.86 per cent and 37.86 per cent to the total equity turnover volume and value, respectively. The Consumer Goods sector followed with 253.536 million shares valued at N15.244 billion in 8,869 deals, while the Services sector recorded a turnover of 193.424 million shares worth N931.795 million in 4,716 deals.
Universal Insurance, Guaranty Trust Holding Company (GTCO), and AIICO Insurance emerged as the most traded equities by volume, contributing 20.79 per cent and 15.31 per cent to the total equity turnover volume and value, respectively.
As investors gear up for another trading week, market sentiment remains cautious, with participants closely monitoring economic and corporate developments for signs of recovery.
Meanwhile, analysts anticipated mixed performance on the Nigerian equities market this week as investors search for attractive entry points.
Looking ahead to the new week, Cowry Assets Management Limited said, “it is anticipated that the market may experience a mixed performance in the coming week. While some degree of bargain hunting is expected as investors search for attractive entry points, much of the direction will be shaped by the anticipated earnings reports and the broader macroeconomic outlook.
“Despite the challenges presented by this week’s market pullbacks, which were largely driven by profit-taking and sell-offs, there may be buying opportunities for discerning investors. These opportunities are especially apparent for those who are looking to capitalize on low valuations and market volatility ahead of the upcoming Q4 earnings season.
“The combination of mixed macroeconomic data and a series of anticipated economic events, such as the upcoming Monetary Policy Committee (MPC) meeting, is likely to continue influencing market dynamics. In this environment, it is crucial for investors to focus on stocks with strong fundamentals, as these are more likely to weather the current economic challenges and offer better long-term prospects.”
Afrinvest Limited noted that, “in the coming week, we anticipate the bourse to post mild gain, spurred by bargain opportunity in stocks with substantial price correction in recent weeks.”
