NGX Shrinks as Equities Investors Lose N6.54trn in November
It was a dirty November for investors in the Nigerian stock market, as the equities portfolio value sank by more than N6.54 trillion across trading sessions.
Bears maintained a grip over the market as sentiment nosedived amidst new capital gains tax distortions that caused foreign investors to rotate out from the Nigerian bourse ahead of implementation.
The red rain touched all market movers except few with abysmally low trading volume and majority of companies whose shareholdings concentrate with the owners.
The market trend was practically put on hold while financial stocks struggle to get re-rated amidst downbeat sentiment in the absence of fresh catalysts.
The bloodbath was deeper as banks stock retreated sharply following an unimpressive performance following small interest rate cut of 50 basis points, and exchange rate stability.
For the fourth straight week, the Nigerian Exchange (NGX) All-share index extended its bearish momentum, slipping by 0.19% week on week to close at 143,519.81 points, trading data showed.
At the close of trading session on Friday, year to date return settled at 39.44%. All sectoral indices closed in the red zone.
The industrial index led the laggards, falling by 1.92%, driven by weakness in bellwether names such as BUACEMENT whose market value declined by 4.76% last week.
This was followed by a 0.81% decline in the oil and gas sector due to drags in OANDO whose share price fell by 2.87%. The market witnessed a 0.70% drop in the consumer goods sector on the back of pullbacks in NB whose share price fell by 2.55% and INTBREW lost 4.17%.
The dirty November also saw a 0.67% week-on-week decline in the banking index, driven by a 2.6% week-on-week decline in WEMABANK and a 1.02% price slump in UBA.
The insurance index also dipped by 0.07% owing to a 14.78% drop in SUNUASSUR and a 2.67% loss in LASACO. Meanwhile, market breadth improved to 1.18x from 0.38x in the prior week, indicating a stronger proportion of advancing stocks relative to decliners.
Trading activity also strengthened, as total volume inched up by 1.38% to 2.68 billion units from 2.64 billion, while value traded rose by 10.78% to N109.01 billion from N98.40bn previously.
November closed with a 6.88% monthly decline, while market capitalisation fell N128.54 billion week on week to N91.29 trillion, bringing total November losses to N6.54 trillion, TrustBanc Financial Group said in a report. GTCO Delivers 52% Gain in 11-Month Amidst Earnings Pressure
