Market Index Dips as Equities Investors Lose N118bn on NGX
The equities market capitalisation of the Nigerian Exchange (NGX) reduced by more than N118 billion week on week due to negative trades. Investors started taking profit early in the week before sentiment began to pick up. Overall trading pattern revealed that the Nigerian stock market ended on a mixed sentiment.
This results in a slight decline of 0.20% week-on-week in the All-Share Index (ASI), which closed at 97,236.19 points.
This move takes the index further away from the 100,000-point mark, reflecting investor caution amid ongoing economic challenges and policy shifts by both the fiscal and monetary authorities, Cowry Asset Limited said.
Stock market analysts said the week was marked by fluctuating trading patterns across sectors, with the Industrial and Consumer Goods indices particularly impacted. Investors remained on edge due to concerns over inflation, fuel price hikes, and the potential effects of fiscal policies on critical sectors.
Stock market analysts attributed that decline in All-share index to ongoing portfolio rebalancing and position-taking. Data from the local bourse showed that year-to-date, the Nigerian Exchange has still posted a 30.04% return, tracking the annual inflation rate.
The equities market recorded more decliners than gainers, 42 stocks losing value compared to 31 gainers. Cowry Asset Limited said this reflects the broader sentiment of caution among investors in light of economic uncertainties. Despite this overall weak performance, some sectors outperformed the broader market.
The Oil & Gas sector gained 5.43%, driven by strong performances from stocks like CONOIL, while the NGX-Banking sector rose by 2.81%, buoyed by gains in ACCESSCORP, ETI, and STERLINGNG.
The Insurance and Consumer Goods sectors also saw marginal gains of 0.11% and 0.02%, respectively, led by positive movements in stocks such as SOVEREIGN TRUST INSURANCE and MAY & BAKER.
On the flip side, the Industrial Goods sector experienced notable sell-offs, with stocks like ABBEY BUILDERS, BETAGLASS, UPDC, and CUTIX showing weak price movements, reflecting negative sentiment in the sector.
Market activity was positive as the number of trades increased by 4.2% week-on-week, reaching 48,801 deals. Additionally, the trade value surged by 38.7% to N75.75 billion, while the traded volume saw a significant 138.1% increase, reaching 6.47 billion shares.
Top weekly gainers include EUNISELL (+46%), JOHNHOLT (+46%), CONOIL (+37%), SOVRENINS (+21%), and CONSOLIDATED HALLMARK INSURANCE (+15%). Conversely, the top decliners included ABBEYBDS (-18%), DEAP CAPITAL (-14%), TANTALIZER (-13%), MEYER (- 10%), and ETERNA (-10%).
Stock market analysts at Cowry Asset Limited expect mixed sentiment to persist in the new week as portfolio rebalancing continues. Despite the recent downturn, a near-term rebound is anticipated, although investor sentiment is expected to remain cautious, stockbrokers said.
Overall, the Nigerian equities market cap fell by N118.40 billion week on week to settle at N58.92 trillion on Friday. #Market Index Dips as Equities Investors Lose N118bn on NGX Oil Rises on Middle East Tensions, OPEC+ Output Decision
