Following a N21 billion loss on the Nigerian Exchange (NGX) due to profit-taking trading activity, the market index plummeted. According to trading statistics, the market index, also known as the all-share index, reduced the gains from the previous week, taking a little weekly dive of 0.04% to settle at 100,022.03 points.
Investor portfolio restructuring across various market sectors ahead of the second quarter of the 2024 earnings season contributed to the local bourse’s negative performance.
According to Cowry Asset Limited’s update, weekly statistics revealed that across three of the five trading sessions this week, equities investors suffered a total loss of N20.75 billion, increasing the index’s year-to-date return to 33.77%.
Trading activity was notably weak, as the total traded volume dropped by 14.8% week-on-week to 2.26 billion units, while the total weekly traded value decreased by 37.6% to N31.17 billion.
The market breadth was also weak, with 37 weekly gainers compared to 45 weekly losers. Stockbrokers said despite this, the total number of trades for the week improved marginally by 2.98% week-on-week to 42,851 deals.
In the week, sectoral performance was largely positive with the exception of the consumer index, which declined by 0.69% due to negative price movements in MAYBAKER, DANGSUGAR, and INTBREW. Conversely, bankin and oil & gas indices led the gainers’ chart, with increases of 3.87% and 3.01%, respectively.
The insurance and industrial indices also reported gains of 2.26% and 0.22%, respectively. Risers for the week include CONOIL, JAIZBANK, CORONATION, AIICO, OANDO, WAPCO, UBA, FBNH, and RTBRISCOE.
At the close of the week, notable performers such as VERITASKAP (+25%), CONOIL (+21%), JAIZBANK (+20%), CORONATION (+18%), and AIICO (+13%) emerged as the best-performing securities.
Conversely, negative investor sentiment led to sell-offs in UPDCREIT (-17%), IKEJAHOTEL (-12%), LASACO (-10%), Julius Bernard (-10%), and MUTUAL BENEFIT (-9%), positioning these stocks as the top losers for the week.
Overall, the equities market capitalization of listed equities exhibited a bearish movement, declining by 0.04% week-on-week to N56.58 trillion. For the new week, Cowry Asset Limited expects bulls to lead the charge as the half-year earnings reporting season approaches.
“Position-taking and sector rotation are anticipated to persist ahead of the new earnings season, bringing changes in liquidity, momentum, volume, and reactions to both positive earnings and disappointing numbers, driving volatility that creates wealth for market players.”.
