Equities market investors lose N1.81trn as market closes

Investors in Nigerian equities lost N1.81 trillion in market value last week as renewed selling pressure in major banking and industrial stocks pushed the Nigerian Exchange (NGX) lower.

The NGX All-Share Index (ASI) declined 0.52 per cent week-on-week to close at 250,808.27 points, while market capitalisation fell 1.10 per cent to N162.84 trillion.

Consequently, the market’s year-to-date return moderated to 61.17 per cent from 62.01 per cent in the previous week, reflecting a broad retreat in investor sentiment after the strong gains recorded earlier in the year.

The decline was driven largely by losses in major stocks, with Access Holdings falling 3.33 per cent, Guaranty Trust Holding Company (GTCO) shedding 3.07 per cent and MTN Nigeria Communications losing 2.67 per cent during the week.

These declines outweighed gains in Fidelity Bank, which rose 8.80 per cent, Wema Bank, up 1.95 per cent, and United Bank for Africa (UBA), which gained 0.22 per cent.

Sectoral performance was also mixed, with three of the five major sectoral indices closing lower. The Banking Index recorded the steepest decline at 1.33 per cent, followed by the Consumer Goods Index, which fell 0.91 per cent, and the Industrial Index, down 0.26 per cent.

In contrast, the Insurance Index gained 0.61 per cent, while the Oil and Gas Index edged up 0.05 per cent.

Trading activity also weakened significantly during the week. Total volume traded fell 46.92 per cent to 549.57 million shares, while market value declined 49.67 per cent to N27 billion.

However, the number of deals increased 19.78 per cent to 53,264, indicating that trading activity remained relatively broad despite the sharp contraction in turnover.

Access Holdings led the volume chart with 183.56 million shares traded, while MTN Nigeria topped the value chart with transactions worth N3.35 billion.

Market breadth closed at 1.00x, with 31 stocks gaining and an equal number declining. Transnational Express emerged as the week’s biggest gainer, rising 10 per cent, while PZ Cussons Nigeria led the decliners with a 9.91 per cent loss.

The market also extended its decline in Friday’s session, with the ASI and market capitalisation each falling 0.16 per cent.

The session’s decline was driven by losses in NGX Group, which fell 6.85 per cent, First HoldCo, down 6.16 per cent, and FCMB Group, which shed 3.06 per cent.

The losses were partly offset by gains in GTCO, up 0.61 per cent, Zenith Bank, which gained 0.37 per cent, and MTN Nigeria, up 0.36 per cent.

The decline came amid weaker turnover, with volume traded falling 46.92 per cent to 549.57 million shares and value traded dropping 49.67 per cent to N27 billion, although the number of deals rose to 53,264.

Meanwhile, the NASD Over-the-Counter market recorded a positive session, with the NASD Security Index (NSI) rising 1.24 per cent to 4,461.92 points.

Market capitalisation on the NASD OTC market increased 0.75 per cent to N2.67 trillion, lifting its year-to-date return to 25.91 per cent from 24.37 per cent in the previous session.

Trading activity, however, weakened sharply, with volume falling 48.33 per cent to 1.27 million units and value traded plunging 96.96 per cent to N9.46 million.

Purple Real Estate Investment Trust emerged as the top gainer, rising 11.11 per cent, while Afriland Properties led the decliners with a 10 per cent decline.

In the global market, weaker-than-expected United States employment data added to expectations that the Federal Reserve may have less scope for another interest rate increase this month.

US job growth slowed more than expected in September, while payroll figures for the previous two months were revised sharply lower. The unemployment rate also increased to 4.2 per cent from 4.1 per cent in August as more people entered the workforce.

In the commodities market, crude oil prices declined as reports of possible releases of diesel and crude stockpiles in Europe eased concerns over tight global energy supplies.

Brent crude fell 2.60 per cent to $98.88 per barrel, while West Texas Intermediate declined 4.35 per cent to $87.91 per barrel.

The decline followed discussions among European Union countries over the release of fuel and crude stockpiles to ease market tightness and address concerns over diesel supplies.