The Nigerian Exchange’s (NGX) stock market capitalisation fell by approximately N84 billion over five trading sessions last week due to selloffs in sectorial indicators. Despite pockets of advances this week, the local bourse fell from last week’s favorable zone, owing to sell-side activity on big equities.
As a result of the trading pattern, the NGX year-to-date return (YTD) has declined to 29.0% from 29.2%. The market’s benchmark All-Share Index fell 0.15% week on week, although it closed at 96,433.53 points, above the psychological threshold of 96,000.
The total value of stocks traded in the week dropped by 15.4% to N43.43 billion, while the traded volumes last week fell by 20.3% to 2.14 billion shares, all executed in 55,598 deals—a 16% increase from the previous week.
OANDO led the value term with transactions totaling ₦13.8 billion, followed by ZENITH (₦4.3bn) and GTCO (₦3.6bn). NGX sectorial performance was bearish save for the Oil & Gas index, which gained 1.5% week on week on the back of buying interest in OANDO (+5.9%) and CONOIL (+6.9%).
Conversely, the Insurance and Consumer Goods indices lost 4.5% and 1.2% w/w, respectively, dragged by losses in AIICO (-8.3%), CORNERST (-12.6%), DANGSUGA (-5.5%), and PZ (-9.5%). Following suit, price depreciation in WAPCO (-3.5%) and CUTIX (-2.6%) weighed on the Industrial Goods index, down 0.2% week on week.
Additionally, the Banking and AFR-ICT indices fell 0.1% apiece due to losses in ZENITH (-2.0%), FBNH (2.0%), and MTNN (-0.6%). Investor sentiment, as determined by market breadth, worsened to -0.1x (previously 0.4x) as 35 stocks gained, 45 lost, and 69 closed flat.
Top gainers for the week were IMG (+32.6%), BERGER (+31.1%), and ETRANZACT (+20.6%), while RTBRISCO (-27.6%), FTNCOCOA (-18.4%), and OMATEK (-18.2%) led the losers.
Sectoral performance in the week was predominantly bearish, with four sectors recording declines. The insurance index with a 4.45% decline led the way following sell pressures in CORNERST (-12.59%).
In a similar fashion, the consumer goods (-1.17%), industrial goods (-0.17%), and banking (-0.12%) indices lost some value following sell-offs in DANSUGAR (-5.54%), WAPCO (-3.46%), and ZENITHBANK (-1.96%), respectively.
However, the Oil & Gas index appreciated by 1.52% week on week due to sustained demand in OANDO. Overall, equities market capitalisation declined by₦83.8 billion to close at₦55.4 trillion.
Stockbrokers at Cowry Asset Limited expect mixed sentiment to rule the market activities, with position-taking and portfolio reshuffling likely to intensify as market players await the half-year publication of interim dividend-paying banks.
From a technical perspective, the NGX is showing signs of recovery, as indicated by the candlestick formations and momentum indicators, with equity investors poised to capitalise on pullbacks to acquire value stocks, the firm said.
