The Nigerian Exchange’s (NGX) stock market capitalisation fell sharply as sell-side traders seized over trading operations on the local bourse. Last week, investors sold more equities. However, the detrimental consequences of selloffs were mitigated by the rights difficulties identified by international breweries.
According to stockbrokers, investors sold shares in some mid- and large-cap listed companies, dragging down the benchmark index. However, sell-side pressure had a reduced impact on market capitalisation because International Breweries listed shares worth N516.2 billion on the exchange this week.
This trend emerged as market participants continued to react to the positive outcome of the most recent Treasury bills and FGN bond auctions, which saw strong investor participation, according to Cowry Asset’s market update.
The NGX All-Share Index (ASI) declined 1.16% week-on-week to close at 95,973.45 points. Stock analysts said the decline was mostly caused by pressured sell-offs in the consumer and industrial goods sectors.
Trading activity this week was noticeably mixed, with lackluster market sentiment dominating. The weekly traded volume increased by 183.6% week-on-week to 5.64 billion units, but the weekly traded value fell by 17.78% to N33.05 billion, and the number of weekly transactions decreased by 4.60% to 4,993 trades.
This downturn was exacerbated by portfolio realignment in the face of positive market breadth, as evidenced by the fact that the number of gainers (43) was outstripped by the number of losers (36), Cowry Asset Limited said.
In terms of sectoral performance, the firm said the picture was largely positive, with the exception of the industrial goods and consumer goods sectors, which retreated by 4.94% and 1.42% week-on-week, respectively.
The pullbacks in the equities market provided strong buying opportunities that buoyed investor sentiment, according to Cowry Asset Limited. Stockbrokers added that this positive sentiment was reflected in the performance of certain stocks, leading to gains in the oil & gas (3.54%), insurance (1.90%), and banking (0.37%) indexes.
As the week drew to a close, specific stocks stood out as top gainers. RTBRISCOE led the chart with a 59% increase, followed by TANTALIZER (55%), OANDO (34%), DEAPCAP (30%), and UCAP (27%), all benefiting from positive price movements during the week.
Conversely, stocks such as CUTIX (-37%), DANGCEMENT (-10%), TIP (-10%), THOMASWY (-10%), and BETAGLASS (- 19%) were among the top losers, primarily due to sell-offs by investors.
The NGX index’s current position below the T-line, along with the 50-day Exponential Moving
Stock experts at Cowry Asset Limited told investors in an email that transaction volume patterns and support levels are signalling further buying opportunities, even as market participants look ahead to the forthcoming release of the Q2 2024 GDP report, along with audited half-year earnings and interim dividend declarations.
Cowry Research anticipates a mixed performance in the new week, driven by ongoing portfolio rebalancing and profit-taking activities.
Overall, the market capitalisation went down to N55.13 trillion, with a total of N2.45 billion being wiped off from the market. As a result, the year-to-date return for the market now stands at 28.35%.
