Equities Market Sheds N42bn over Investors’ Profit-taking in one week

*Expect bargain hunting to dominate stock market this week –Analyst

Motolani Oseni

The equities market of the Nigerian Stock Exchange (NGX) closed last week trading session in red, as market capitalization shed N42 billion Week-on-Week(WoW) to close at N25.436 trillion.

This even as analysts have projected bargain hunting activities to dominate the domestic stock market this week, as investors’ cherry-pick relatively attractive stocks.

In the just concluded trading week, the NGX All-Share Index (ASI) declined by 0.16 per cent to close at 47,202.30 basis points, while the market capitalization shed N42 billion W-o-W to close at N25.436 trillion.

Although, further breakdown of the activities showed that sub-sector gauges closed in green; the NGX Banking, NGX Insurance index, NGX Consumer Goods NGX Oil & Gas and the NGX Industrial indices rose by 2.34 per cent, 1.51 per cent, 1.35 per cent, 0.29 per cent and 0.06 per cent respectively to close at 453.45 points, 185.85 points, 579.00 points, 423.93 points and 2,138.30 points respectively.

Also, market breadth for the week was positive as 44 stocks appreciated in price, 31 stocks depreciated in price, while 81 equities remained unchanged. SCOA Nigeria led the gainers table by 42.40 per cent to close at N1.78, per share. RT Briscoe followed with a gain of 39.29 per cent to close at 39 kobo, while SUNU Assurance went up by 30.00 per cent to close to 39 kobo, per share.

On the other hand, Pharma-Deko led the decliners table by 16.67 per cent to close at N1.65, per share. Okomu Oil Palm followed with a loss of 10.00 per cent to close at N127.80, while Juli Plc declined by 9.89 per cent to close at 82 kobo, per share.

The Financial Services Industry (measured by volume) led the activity chart with 886.121 million shares valued at N10.058 billion traded in 11.563 deals; thus contributing 66.60 per cent and 44.31 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 107.592 million shares worth N4.472 billion in 3,833 deals, while the Conglomerates Industry traded a turnover of 102.192 million shares worth N198.077 million in 1,008 deals.

Trading in the top three equities; Access Bank, Guaranty Trust Holding Company (GTCO) and Fidelity Bank (measured by volume) accounted for 316.758 million shares worth N4.353 billion in 3,476 deals, contributing 23.80 per cent and 19.18 per cent to the total equity turnover volume and value respectively.

In the new week, analysts at Afrinvest Limited stated that “This week, we expect bargain hunting activities to dominate as investors cherry-pick relatively attractive stocks.”

Also, Cowry Assets Management Limited expected the equities market to mellow as corporates that opted for 60-days filing option may release their audited full year 2021 results in the next two weeks; hence, we feel the new week will largely be quiet.

Cordros Capital Limited stated that “This week, we expect investors to take advantage of the moderation in the share prices to make a re-entry in dividend-paying stocks ahead of subsequent 2021 full year earnings releases. However, we believe investors will remain reluctant to leave gains in the market.”