Investors See Huge Loss as Selloffs Scratch Banking Index
Equities investors lost more than N103 billion on the Nigerian Exchange (NGX) over a bear festival that lasted for two days out of three days. According to stockbrokers, bears grip held the benchmark index from climbing amidst short trading session following Islamic holiday in Nigeria.
Consequently, market index declined by 0.18% week on week to 99,743.05 points as portfolio rebalancing continues for investors seeking alpha in the market. This week, trading activities maintained a positive trajectory for the week, evidenced by further improvement in the total volume and value of weekly trades.
Stockbrokers said in their separate reports that the total traded volume advanced by 25.4% week-on-week to 3.30 billion units, while the total weekly traded value increased sharply by 21.8% week on week to N53.16 billion.
However, the total number of trades for the week declined by 18.3% week on week to 27,536 deals. In its market update, Cowry Asset Limited told investors that sectoral performance was largely positive, with the Consumer Goods, Oil & Gas and Industrial Goods indices.
NGX market report showed that the consumer goods index surged by 0.29% in the week, followed by 0.21% gained by oil and gas index while industrial index rose by 0.10% in the week. The stocks contributing to these gains included GUINNESS, PRESCO, ETERNA, CHAMPION, CUTIX, and TOTAL, according to stockbrokers.
On the contrary, investors dumped financial stocks last week due to risk off sentiment that has persisted following notice of banking sector recapitalisation. The insuance and banking indices, pared last week’s gains by 1.31% and 0.04% respectively on the back of negative price movements in VFDGROUP, FBNH, AIICO, FIDELITYBNK and MANSARD.
The top performing stocks in the week include VERITASKAP (+64%), CHAMS (+56%), GUINNESS (+41%), DEAPCAP (+40%), and PRESCO (+34%). Conversely, negative investor sentiment led to sell-offs in MAYBAKER (-14%), ETRANZACT (-11%), INTENEGINS (-10%), and NASCON (-10%), positioning these stocks as the top losers for the week, Cowry Asset said.
In the new week, stockbrokers expect the local bourse to trade in mixed sentiment on the back of low valuation and portfolio repositioning for value stocks as investors continue to exhibit a wait and see approach.
As trading volume patterns continue to fluctuate, suggesting buying interest in some sectors and profit-taking in others amidst a wait-and-see attitude among market players, Cowry Asset advised investors to trade in stocks of companies with sound fundamentals.
Overall, a total of N103.08 billion was lost by equity investors from two out of the three sessions this week while the year-to-date return of the index moderated to 33.39%. #Investors See Huge Loss as Selloffs Scratch Banking Index FBN Holdings Shrinks in Value as Selloffs ‘Heat’ Persist
