Equities Market Wrap: Investors Sentiment Remains Downbeat
The equities market continued to trade negatively due to downbeat investors’ sentiment in the local bourse. The equities market capitalisation has declined strongly due to unfavourable trading activities in the second quarter of 2024.
Corporate earnings announcements came with mixed sentiment as major players’ balance sheets were broken with negative shareholders. FX exposure-driven net losses posted in the financial year 2023, which later extended to Q1, damaged some companies’ balance sheets.
Last week, additional 402,082,657 ordinary shares of 50 Kobo each per share of Cadbury Nigeria Plc (Cadbury) were listed on the official list of Nigerian Exchange Ltd
A weekly report of the NGX made available to newsmen in Lagos stated that Cadbury’s additional shares were listed during the week. The NGX explained that the additional shares listed on NGX arose from Cadbury’s conversion of N7,036,446,501.26 intercompany loan to equity.
“With this listing of the additional 402,082,657 ordinary shares, the total issued and fully paid up shares of Cadbury has now increased from 1,878,201,962 to 2,280,284,619 ordinary shares of 50 kobo each,” the regulator said.
Last week, the NGX suspended trading in the shares of Arbico Plc on Friday. The market regulator stated that the suspension was necessary to prevent trading in the shares of the company in preparation for the delisting of the securities of the company in line with its regulatory approval.
Meanwhile, the April 2024 issue of the Federal Government of Nigeria (FGN) Savings Bonds was listed on the NGX on Monday. In the course of trading for the week, trade turnover settled 15.8 percent lower than the previous session.
Specifically, investors traded a total of 1.652 billion shares worth N42.677 billion in 38,123 deals this week on the floor of the Exchange, in contrast to 2.187 billion shares valued at N50.667 billion that exchanged hands last week in 45,277 deals. Consequently, the NGX All-Share Index, which opened the week at 98,233.76, lost 0.11 percent to close at 98,125.73.
The market capitalisation also depreciated by 0.10 percent, or N54 billion, to close the week at N55.508 trillion, as against N55.562 trillion posted in the previous week.
Similarly, all other indices finished lower with the exception of NGX Main Board, NGX Lotus II, NGX Industrial Goods, and NGX Pension Broad, which appreciated by 0.97, 0.58, 0.01, and 0.12 percent, respectively, while the NGX ASeM and NGX Sovereign Bond indices closed flat.
Meanwhile, the financial services industry, measured by volume, led the activity chart with 979.479 million shares valued at N16.647 billion traded in 20,708 deals. This contributed 59.30 percent and 39.01 percent to the total equity turnover volume and value, respectively.
The conglomerate industry followed with 239.825 million shares worth N2.879 billion in 2,178 deals. The consumer goods industry took third place, with a turnover of 148.685 million shares worth N3.525 billion in 4,757 deals. Trading in the top three equities, namely Custodian Investment Plc, Guaranty Trust Holding Company Plc, and Access Holdings Plc measured by volume, accounted for 500.343 million shares worth N11.768 billion in 6,551 deals.
This contributed 30.29 percent and 27.57 percent to the total equity turnover volume and value, respectively. Also, 28 equities appreciated in price during the week, lower than 40 equities in the previous week.
51 equities depreciated in price, higher than 37 in the previous week, while 76 equities remained unchanged, lower than 77 recorded in the previous week. On the losers’ table, PZ Cussons Nigeria led by 22.16 percent to close at N21.60, and NEM Insurance followed by 18.36 percent to close at N8.45 percent per share.
Eterna Plc lost 18.32 percent to close at N11.15, the United Bank of Africa (UBA) shed 17.23 percent to close at N21.85, and The Initiates Plc dropped 15.22 percent to close at N1.95 per share. Conversely, International Energy Insurance led the gainers’ table by 11.49 percent to close at N1.65, while McNichols Plc trailed by 9.89 percent to close at one Naira per share.
Custodian Investment Plc rose by 9.68 percent to close at N10.20, Julius Berger advanced by 9.53 percent to close at N79.30, and Airtel Africa Plc gained 8.97 percent to close at N2,150 per share. #Equities Market Wrap: Investors Sentiment Remains Downbeat #Reforms: Fitch Revises Nigeria’s Outlook to Positive
