NGX All-Share Index Sheds 0.50% on Tier-1 Banks Losses
The Nigerian Exchange (NGX) All-Share index shed 0.50% due to sell pressures on Tier-1 banks, a reflection of investors’ negative perception from their respective earnings delay. The local bourse has been performing negative over the last three weeks as earnings and interim dividends euphoria begin to fade, causing investors stock rotation across sectoral indexes.
The selloffs in ZENITH (-5.70%), WAPCO (-3.38%), GTCO (-2.13%), and ARADEL (-1.73%), outweighed gains in tickers like GEREGU (11.11%), NB (+3.24%) and Stanbic (+6.38%).
Trading record revealed that the benchmark NGX All-Share Index (ASI) declined by 0.50% week-on-week, closing at 140,295.49 points, down from 141,004.14 points recorded in the previous week. Due to negative trading results posted in the local bourse, market capitalisation fell by N439 billion to N88.77 trillion, bringing the year-to-date return to 36.31%.
Stockbrokers reported that the bearish trend further dampened investor confidence, as evidenced by the weak market breadth of 0.54x, with only 31 gainers against 57 decliners.
Data obtained from the Nigerian Exchange reevaled that the total number of deals declined by 6.54% to 142,654, while traded volume and value fell sharply by 41.03% and 21.21% week-on-week, settling at 3.20 billion units and N85.47 billion, respectively.
“This contraction in market turnover underscores the reduced appetite from both retail and institutional investors, reflecting heightened caution amid the prevailing bearish sentiment”, stockbrokers said. Sectoral performance was broadly negative, as all six tracked indices closed the week in the red. The Banking Index led the losers, dipping 1.21% week-on-week, driven by sustained selloffs in select mid- to large-cap stocks.
The Insurance Index followed with a 1.02% decline, pressured by notable losses in counters such as Guinea Insurance, Lasaco Assurance, and Royal Exchange. Similarly, the Consumer Goods Index shed 0.89%, while the Industrial Goods, Commodities, and Oil & Gas indices slipped by 0.36%, 0.30%, and 0.18%, respectively, reflecting the overall bearish sentiment across the market.
Stock analysts at Cowry Asset Limited anticipate a mixed performance in the Nigerian equities market, with cautious sentiment likely to dominate amid tight liquidity and lingering macroeconomic pressures.
“Sell pressure in the Banking and Industrial Goods sectors may persist, while bargain-hunting in oversold counters, particularly within Consumer Goods and Insurance could drive mild recoveries”, Cowry Asset Limited told investors.
Overall, the market is expected to trade range-bound with a slight bearish bias, barring any major policy pronouncements or corporate catalysts. #NGX All-Share Index Sheds 0.50% on Tier-1 Banks Losses Nigeria Bonds Yield Falls Amidst Widening Real Interest Rate
