NGX Down by N21bn over Selloffs in Cadbury, VFD
The Nigerian Exchange (NGX) equities market capitalisation was down by more than N21 billion at the beginning of the week due to a relatively weak sentiment in the local bourse. This followed the bears’ rampage in the equities market spanning four out of five days in the just concluded week.
Nigeria is confronted with unsavoury economic developments that plunged key indicators downward. Noticeably, there is induced pressure in the forex market, forcing local investors to weigh their portfolio positions.
Due to a wave of selling rallies driven by investors’ weak sentiment, stock market performance indicators dropped by -0.06%, dragging year-to-date return lower. Trending ahead of an annual inflation rate of 26.72%. It was noted that year-to-date return moderated to 30.49% from +30.56%, according to data from the exchange.
In its market update, Atlass Portfolios Limited said the market index or the All Share Index decreased by 38.49 basis points, representing a decline of -0.06% to close at 66,876.92.
However, market activities ended on a mixed note, according to trading records posted on the Nigerian Exchange website. Total Volume traded for the day increased by +52.81%, while the total value traded decreased by -31.22%.
Citing data from the local bourse, stockbrokers said approximately 314.62 million units valued at ₦4,388.13 million were transacted in 6,133 deals.
UBA was the most traded stock in terms of volume, accounting for 15.05% of the total volume of trades. The Pan African lender was followed by ACCESSCORP (12.88%), FCMB (9.28%), GTCO (8.72%), and TRANSCORP (5.25%) to complete the top 5 on the volume chart.
Due to market size advantage, GTCO was the most traded stock in value terms, with 21.89% of the total value of trades on the exchange. THOMASWY topped the advancers’ chart with a price appreciation of 9.92 per cent.
The company which was the best performer in the stock market last week was trailed by ACADEMY (9.71%), IKEJAHOTEL (+9.52%), CHAMS (+7.38%), TANTALIZER (+6.90%), and eighteen others. Twenty-one stocks depreciated, stockbrokers reported, citing data from the Nigerian stock market. CADBURY was the top loser, with a price depreciation of -10.00%.
VFDGROUP lost 9.99%, MCNICHOLS dipped by 9.68%, UPL spiked by 9.32%, CHIPLC fell by 5.22% and OMATEK bumped by 4.44%. In spite of the trading direction, the market breadth closed positive, recording 23 gainers and 21 losers.
Even then, the market sector performance was positive. Two of the five major market sectors closed in the green, including the Insurance (+0.68%), and the Banking sector (+0.44%).
Meanwhile, the Consumer goods sector was down by -0.30% and the Industrial and Oil & Gas sectors closed flat. Overall, equities market capitalisation dropped by ₦21.15 billion, representing a drop of -0.06%, to close at ₦36.74 trillion from ₦36.76 trillion last Friday.