NGX Lost N39bn as Bullish Run Failed to Cancel Losses
The equities segment of the Nigerian Exchange (NGX) slowdown last week, losing more than N39 billion in five days trading session despite the last three days’ rallies.
The market suffered its second consecutive loss due to nasty selloffs on Dangote and BUA Cement last week Monday drove the Nigerian Exchange (NGX) All-Share Index down 0.1% below the previous week to close at 51,705.61 points.
As a result, year-to-date return declined to 21.0% while market capitalisation fell to ₦27.87 trillion. In the just concluded week, activity level weakened due to selloffs as average volume and value traded dipped by 17.4% and 8.6% week on week respectively to 194.4m units and ₦2.6 billion, according to Afrinvest stockbrokers’ note.
Equities investors buying interest in blue-chip stocks spiked last week ahead of expectation of the release of second-quarter earnings by listed companies in the local bourse.
On Friday, the market gained ₦46.83 billion. However, the market activities were bearish, as the total volume and value plunged by 30.08 per cent and 35.82 per cent, respectively, indicating cautious trading by investors amidst external economic pressure, according to Atlass Portfolios Limited.
The market report shows that approximately 156.09 million units valued at ₦1.83 billion were transacted in 4,312 deals. Amidst the court order that non-controlling interest should be bought out, OANDO emerged as the most traded stock in terms of volume, accounting for 12.39 per cent of the total volume of trades.
The oil company’s stock was followed closely by LINKASSURE (7.68%), TRANSCORP (5.84%), ACCESSCORP (5.76%), and UBA (5.70%) to complete the top five on the volume chart.
MTN Nigeria Plc appeared as the most traded stock in value terms, with 13.03 per cent of the total value of trades on the exchange. The Telco’s giant valuation moved upward drastically to becoming the second largest on the NGX.
On Friday, CHAMPION topped the advancers’ list with a price appreciation of 10.00 per cent, trailed closely by FBNH (4.46%), BUAFOODS (3.97%), UCAP (3.67%), HONYFLOUR (1.00%), MTNN (0.26%), ZENITH BANK (0.23%) and five (5) others.
On the contrary, citing market data, Atlass Portfolios Limited said eighteen (18) stocks also depreciated, topped by LIVESTOCK with a price depreciation of 9.09 per cent, to close at ₦1.40.
NB Plc’s share price declined 4.00%, OANDO lost 3.39%, DANGSUGAR fell by 0.93%, FLOURMILL’s share price was reduced by 0.76%, and GTCO dropped off 0.24%.
At the closed of the last trading session, the market breadth closed negative, recording 12 gainers and 18 losers. Meanwhile, sectoral performance was bearish, as three of the five sectors closed negatively compared to the previous session.
This was led by Insurance (-0.71%), Consumer Goods (-0.56%), and Oil & Gas (-0.46%). The Banking sector grew by 0.06%, leaving the Industrial Goods sector unchanged. #NGX Lost N39bn as Bullish Run Failed to Cancel Losses
