Stock Investors Lose N156bn Following Profit-taking
Investors on the local equity market saw their wealth depreciating by N156bn at the close of last week’s trading following profits-taking and selling sentiments.
During the week, the market reacted to the latest inflation data published by the National Bureau of Statistics, which pegged September’s inflation figure at 26.72 per cent, while awaiting more corporate earnings reports, which will offer insights into the upcoming Q3 Gross Domestic Product figures and the full-year results of listed companies.
The NGX All-Share Index and Market Capitalisation depreciated by 0.42 per cent to close the week at 66,915.41 and N36.764tn. Similarly, all other indices finished lower with the exception of NGX CG, NGX Premium, NGX Banking, NGX AFR Bank Value, NGX AFR Div. Yield, NGX MERI Value and NGX Sovereign Bond appreciated by 0.47 per cent, 0.54 per cent, 3.52 per cent, 1.82 per cent, 3.24 per cent, 2.99 per cent and 3.08 per cent respectively while the NGX ASeM index closed flat.
Trading activities concluded on a subdued note, with the weekly deal count decreasing by 1.30 per cent week-on-week to 29,298 deals. However, the average traded volume increased by 1.80 per cent, reaching 1.50 billion units, while the weekly average value dipped significantly by 26.72 per cent week-on-week to N17.90bn.
The Financial Services Industry (measured by volume) led the activity chart with 1.047 billion shares valued at N12.709bn traded in 13,667 deals; thus contributing 69.99 per cent and 52.34 per cent to the total equity turnover volume and value respectively. The ICT Industry followed with 94.997 million shares worth N1.445bn in 1,982 deals. The third place was the Conglomerates Industry, with a turnover of 80.655 million shares worth N526.409m in 1,459 deals.
Top three equities at the end of the week were United Bank for Africa Plc, Fidelity Bank Plc and Access Holdings Plc. Measured by volume, they accounted for 447.125 million shares worth N6.488bn in 4,913 deals, contributing 29.88 per cent and 26.72 per cent to the total equity turnover volume and value respectively.
Throughout the week, investors showed keen interest in stocks like Thomas Wyatt, Daar Communications, Julius Berger, United Bank for Africa and Dangote Sugar, with their share prices increasing by +29.64 per cent, +9.52 per cent, +9.09 per cent, +8.26 per cent, and +4.61 per cent respectively, despite market volatility.
On the losers’ chart were Sovereign Insurance, Cadbury Nigeria Plc, Stanbic IBTC Holdings, Flour Mills, and Okomu Oil whose share prices declined by 17.50 per cent, 16 per cent, 13.06 per cent,11.88 per cent and 9.96 per cent to close at N0.33, N12.60, N69.55, N28.20 and N236.80 respectively.
Commenting on the week ahead, analysts at Cowry Asset Management Limited projected that investors will continue profits-taking while market players await a significant catalyst to boost activity, meaning mixed sentiments are expected to persist.
“The market may see fluctuations as early filers publish their Q3 earnings reports, with a combination of bargain hunting and portfolio repositioning influencing market dynamics,” the weekly report said.
