NGX Slumps as Unimpressive Earnings Prompt Selloffs
Nigerian Exchange (NGX) lost more than N391 billion as the local bourse opened the week on a bearish note. Unimpressive earnings triggered by foreign exchange losses by significant numbers of listed companies douse buying sentiment in the equities space.
The trading pattern witnessed last week signaled the return of bears into the equities space, following yield repricing in the fixed income market. The apex bank sold 1-year treasury bills at 12.15% at midweek auction.
Due to selloffs seen across key indices, the Nigerian Exchange All-Share index, or market index dipped by 1.10%, moderating year-to-date return. Data from the local exchange indicated that year-to-date return settled at 25.53%, still far ahead of an annual inflation rate of 22.79% reported in June 2023.
However, stockbrokers reported that market activities were up as the total volume and total value traded rose by +46.47% and +21.12% respectively.
Approximately 673.42 million units valued at ₦6,474.47 million were transacted in 9,788 deals, according to Atlass Portfolios Limited stock market update.
ABBEYBDS was the most traded stock in terms of volume, accounting for 16.68% of the total volume of trades. The mortgage bank was followed by FIDELITYBK (8.70%), UBN (7.59%), FCMB (7.33%), and UNIVINSURE (7.06%) to complete the top 5 on the volume chart.
Meanwhile, MTNN was the most traded stock in value terms, with 15.62% of the total value of trades on the exchange. BETAGLAS, LINKASSURE, MANSARD, and SUNUASSUR topped the advancers’ chart with a price appreciation of 10.00 percent each.
These insurance stocks were trailed by BERGER (9.95%), SKYAVN (+9.87%), CUSTODIAN (+9.79%), TIP (+9.59%), and ten others, according to stock market updates from Broadstreet.
Forty-nine listed companies’ stocks depreciated, where CAVERTON, LIVESTOCK, DANGSUGAR, ETI, NPFMCRFBK, and SOVRENINS were the top loser, with a price depreciation of -10.00% each.
GUINNESS (-9.98%), ETERNA (-9.90%), NAHCO (-9.80%), NASCON (- 9.72%), and CADBURY (-9.64%) also dipped in price.
At the end of trading session on Monday, the market breadth closed negative, recording 18 gainers and 49 losers. The bear grips held down market sectorial performance, closing negative.
Nigerian Exchange record showed that three of the five major market sectors were down, led by the Banking sector (-2.55%), followed by the Consumer goods sector (-1.42%), and the Industrial sector (-0.03%).
In contrast, the Insurance and Oil & Gas sectors were up by +1.58% and +0.40% respectively. Overall, equities market capitalisation fell by ₦391.20 billion, representing a decrease of -1.10%, to close at ₦35,011.46 trillion from ₦35,402.66 trillion last Friday. #NGX Slumps as Unimpressive Earnings Prompt Selloffs#
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