NGX Drops By N156bn As Investors Take Their Profits

Stock Exchange Closes Trading Week With N30bn Gain

As a result of profit-taking activity, the Nigerian Exchange’s (NGX) equity market capitalization decreased to N36.76 trillion from N156 billion. The bearish trend that predominated in four of the five trading sessions this week, driven by profit-taking actions and selling mood, was the primary cause of the exchange’s poor performance.

The stock market, according to stockbrokers, may see changes when early filers release their earnings reports for the third quarter of the fiscal year 2023, with a mix of bargain hunting and portfolio repositioning impacting market dynamics.

Over the course of a week, the market value of all stocks decreased by 0.42% from week to week to N36.76 trillion, and the All-Share Index’s return for the year as a whole was 30.56%. Due to profit-taking and sectoral rotation, the involvement of individual and institutional investors in the selloff resulted in the loss of N156.34 billion from their portfolios. Weak mood on Friday, when equity investors reported a daily loss of 100.75 billion, was a key factor in the loss.

The market index, also known as the Nigerian Exchange All-Share Index, fell today by 183.39 basis points, or -0.27%, to settle at 66,915.41 points.The overall volume of trading for the day declined by -31.07%, but the total value of trading rose by +42.31%, indicating that market activity was mixed.

Approximately 205.89 million units valued at ₦6,380.22 million were transacted in 4,986 deals. FIDELITYBK was the most traded stock in terms of volume, accounting for 13.69% of the total volume of trades.

This was followed by FCMB (8.78%), ZENITH BANK (8.77%), UBA (6.52%), and FBNH (5.85%) to complete the top 5 on the volume chart. GEREGU was the most traded stock in value terms, with 50.12% of the total value of trades on the exchange.

THOMASWY topped the advancers’ chart with a price appreciation of 10.00 per cent. The company was trailed by IKEJAHOTEL (7.51%), OMATEK (+7.14%), AIICO (+4.48%), CUTIX (+4.07%), and nine others.

Twenty stocks depreciated on Friday, according to data from the local bourse. CADBURY was the top loser, with a price depreciation of -10.00%. On the list were FLOURMILL which fell by 9.03% SOVRENINS dropped by 8.33% and GUINEAINS lost 8.00%.

GEREGU declined by 7.22% while selloffs dragged UNILEVER backward by 5.23%. Trading results showed that the market breadth closed negative, recording 14 gainers and 20 losers.

Meanwhile, the market sector performance was relatively quiet, as two of the five major market sectors closed flat (the Industrial and Oil & Gas). The Banking and Insurance sectors rose by 0.12% and +0.08% respectively, while the Consumer goods sector dropped by -0.56%

On weekly comparison

Sectoral performance for the week was predominantly negative, as a bearish trend prevailed in four out of five trading sessions this week, driven by profit-taking activities and selling sentiment.

The banking sector was the exception, posting a 3.52% weekly gain. Trading activity concluded on a subdued note, with the weekly deal count decreasing by 1.30% week-on-week to 29,298 deals.

However, the average traded volume increased by 1.80%, reaching 1.50 billion units, while the weekly average value dipped significantly by 26.72% week-on-week to N17.90 billion. Throughout the week, investors showed keen interest in stocks like THOMASWY (+30), DAARCOMM (+10), JBERGER (+9), UBA (8), and DANGSUGAR (+5), with share prices RISING respectively, despite market volatility.

On the downside, SOVRENINS (-18), CADBURY (-16), STANBIC (-13), FLOURMILL (-12), and OKOMUOIL (-10) were the week’s laggards. Naira Devaluation Deepens Economic Crisis in Nigeria

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