Market Index Slumps as Investors Lose N21bn
The market index slumped following N21 billion loss recorded on the Nigerian Exchange (NGX) as a result of profit taking trading activities.
Trading data showed that the all-share index or market index pared last week’s gains, nosediving marginally by 0.04% week-on-week and settling at 100,022.03 points.
Negative performance in the local bourse was driven in part by investors’ portfolio realignment across major market sectors ahead of the second quarter of 2024 earnings season.
Weekly data showed that equity investors incurred a total loss of N20.75 billion over three out of five trading sessions this week, bringing the year-to-date return of the index to 33.77%, Cowry Asset Limited said in its update.
Trading activity was notably weak as the total traded volume dropped by 14.8% week-on-week to 2.26 billion units, while the total weekly traded value decreased by 37.6% to N31.17 billion.
The market breadth was also weak, with 37 weekly gainers compared to 45 weekly losers. Stockbrokers said despite this, the total number of trades for the week improved marginally by 2.98% week-on-week to 42,851 deals.
In the week, sectoral performance was largely positive with the exception of consumer index, which declined by 0.69% due to negative price movements in MAYBAKER, DANGSUGAR, and INTBREW. Conversely, Banking and Oil & Gas indices led the gainers’ chart, with increases of 3.87% and 3.01% respectively.
The insurance and industrial indices also reported gains of 2.26% and 0.22%. Risers for the week include CONOIL, JAIZBANK, CORONATION, AIICO, OANDO, WAPCO, UBA, FBNH, and RTBRISCOE.
At the close of the week, notable performers such as VERITASKAP (+25%), CONOIL (+21%), JAIZBANK (+20%), CORONATION (+18%), and AIICO (+13%) emerged as the best-performing securities.
Conversely, negative investor sentiment led to sell-offs in UPDCREIT (-17%), IKEJAHOTEL (-12%), LASACO (-10%), JULIUS BERGER (-10%), and MUTUAL BENEFIT (-9%), positioning these stocks as the top losers for the week.
Overall, the equities market capitalisation of listed equities exhibited a bearish movement, declining by 0.04% week-on-week to N56.58 trillion. For the new week, Cowry Asset Limited expect bulls to lead the charge as the half-year earnings reporting season approaches.
“Position-taking and sector rotation are anticipated to persist ahead of the new earnings season, bringing changes in liquidity, momentum, volume, and reactions to both positive earnings and disappointing numbers, driving volatility that creates wealth for market players”. #Market Index Slumps as Investors Lose N21bn
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