Equities Market Falls by N847bn as Investors Exit Positions
Equities investors lost about N847 billion due to crunching selloffs on the Nigerian Exchange (NGX) platform in the just concluded week. Investors were seen exiting positions as interim dividend announcements failed to boost buying sentiments.
The sell pattern was little different from past bearish tone in the equities market. Data from the Nigerian Exchange showed that All-share index closed down 1.5% week on week to print at 97,100.31 points, and market capitalization settled at N55.13 trillion – while year to date return moderated to 29.86%.
There was records of notable profit-taking activities and sell-offs, particularly across some mid and large-cap stocks.
This downturn further depressed the benchmark index, with low trading volumes and negative market internals, according to Cowry Asset Limited, highlighting both the market’s weakness and potential opportunities for astute investors.
Series of interim dividend declarations failed to boost buying sentiment amidst tight free cash as some banks are in the market to raise huge fund of more than N1 trillion via rights, and public offers.
By the end of the trading week, bearish sentiment had firmly gripped the All Share Index (ASI), which fell by 1.51% on a week-on-week basis, closing 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. #Equities Market Falls by N847bn as Investors Exit Positions CUTIX Gains 30% on Earnings Forecasts, Unusual Trade Volume
