In the previous week, equities investors lost over N847 billion due to sharp selloffs on the Nigerian Exchange (NGX) platform. Investors were observed selling stocks after interim dividend announcements failed to bolster purchasing momentum.
The sell pattern differed little from previous bearish tone in the equity market. According to data from the Nigerian Exchange, the all-share index fell 1.5% week on week to 97,100.31 points, and market capitalization settled at N55.13 trillion, with a year-to-date return of 29.86%.
There were reports of significant profit-taking and sell-offs, notably in some mid and large-cap equities. According to Cowry Asset Limited, this slump pushed the benchmark index even lower, with low trading volumes and negative market internals, underlining both the market’s fragility and potential chances for discerning investors.
A series of interim dividend pronouncements failed to stimulate buying mood in the face of restricted free cash, as some banks seek to raise more than N1 trillion through rights and public offerings.
By the end of the trading week, gloomy mood had grabbed the All Share Index (ASI), which slid 1.51% week on week to close at 97,100.31 points.
Stock analysts attributed the downhill in the market to selloffs in industrial goods sectors, a reflection of the ongoing interplay of market dynamics amidst heightened volatility.
Trading activities in the equities market was subdued. The weekly traded volume dropped by 25.8% week-on-week to 1.99 billion units, while the weekly traded value declined by 17.9% to N40.19 billion.
Citing data from the Nigerian Exchange, Cowry Asset Limited noted that the number of weekly deals fell by 7.24%, amounting to 44,017 trades. The market breadth ended the trading session weaker, evidenced by the fact that the number of gainers outstripped by the number of losers.
In terms of sectoral performance, the picture was largely positive, with the exception of the industrial goods and banking sectors, which retreated by 5.16% and 2.28% week-on-week respectively, as profit-taking exerted downward pressure on these sectors.
In contrast, the market pullbacks witnessed during the week provided strong buying opportunities that buoyed investor sentiment, Cowry Asset Limited said.
This positive sentiment was reflected in the performance of certain stocks, leading to gains in the oil and gas which gained 5.25%, the insurance was up by 0.79% while the consumer goods rose by 0.37%.
Top performers in the market include RTBRISCOE, which led the chart with a 33.9% increase, followed by TOTAL (20%), JBERGER (18%), GUINEAINS (18%), and UPL (12%), all benefiting from positive price movements during the week.
Conversely, stocks such as CUTIX (-18%), BUACEMENT (-15%), OANDO (-12%), LEARNAFRICA (-11%), and CHAMS (-10%) were among the top losers, primarily due to sell-offs by investors.
Overall, the equities market value of the Nigerian Exchange dropped by N846.53 billion to close at N55.13 trillion. Cowry Research anticipates a mixed performance in the coming week, driven by ongoing portfolio rebalancing and profit-taking activities. Nevertheless, we continue to advise investors to focus on fundamentally sound stocks.
