Equities Investors Wealth Shrink by N1.83trn as Index Down 3.27% w/w
…Analysts project a gradual return of positive sentiment this week
The bearish sentiments which dominated the Nigerian Exchange Limited (NGX) trading activities last week, saw equities investors’ wealth decline by a whopping N1.83 trillion, while the market index was down by 3.27 per cent week-on-week (w/w).
However, financial analysts are optimistic that the Nigerian stock market is expected to witness a return of positive movement this week as investors expect more companies to release their full-year 2023 audited accounts in the coming days.
Similarly, market capitalisation decreased by N1.83 trillion to close at N54.035 trillion.
It was, therefore, a lacklustre performance week on week across the sectoral front last week as the NGX Insurance and NGX Industrial Goods indices bore the brunt of the downturn, experiencing losses of 3.40 per cent and 3.87 per cent respectively.
Also, the NGX Consumer Goods, NGX Oil & Gas, and NGX Banking sectors witnessed declines of 2.62 per cent, 1.55 per cent, and 0.69 per cent respectively.
The market breadth for the week was negative as 27 equities appreciated, 54 equities depreciated, and 72 equities remained unchanged. Juli led the gainers table by 60.26 per cent to close at N3.75, per share. PZ Cussons Nigeria followed with a gain of 27.36 per cent to close at N33.75, while Sterling Financial Holdings Company went up by 14.94 per cent to close to N5.00, per share.
On the other side, MTN Nigeria Communications (MTNN) led the decliners table by 18.91 per cent to close at N200.70, per share. SUNU Assurance and Nestle Nigeria followed with a loss of 18.18 per cent each to close at N1.71 and N900.00 respectively, while CWG declined by 11.76 per cent to close at N6.00, per share.
Overall, a total turnover of 1.882 billion shares worth N34.149 billion in 48,464 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.377 billion shares valued at N31.584 billion that exchanged hands the prior week in 42,040 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.275 billion shares valued at N20.427 billion traded in 24,801 deals; contributing 67.78 per cent and 59.82 per cent to the total equity turnover volume and value respectively.
The conglomerates Industry followed with 227.237 million shares worth N2.972 billion in 3,351 deals, while the Oil and Gas Industry pulled a turnover of 115.327 million shares worth N746.959 million in 2,704 deals.
Trading in the top three equities; Transnational Corporation (Transcorp), United Bank for Africa (UBA) and Access Holdings accounted for 563.139 million
shares worth N10.155 billion in 9,270 deals, contributing 29.93 per cent and 29.74 per cent to the total equity turnover volume and value respectively.
In the new week, Cowry Assets Management Limited said: “We anticipate a gradual return of positive investor sentiment, driven by corporate earnings scorecards and announced corporate actions. However, we think the high-inte environment resulting from the recent policy rate hike by the CBN to 22.75 per cent and rising yields in the fixed-income market will likely influence investor behaviour.
“Regardless, investors are expected to continue rebalancing their portfolios as they carefully assess Nigeria’s macroeconomic data. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.”
On market outlook, the chief operating officer of InvestData Consulting Limited, Mr Ambrose Omordion added that: “we expect bearish sentiment to continue as players digest the outcome of MPC decision and take advantage of the pullbacks in the face of expected audited corporate earnings and ongoing portfolio rebalancing.
“This is amidst the volatility and pullbacks that add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”
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