Nigerian Exchange Sinks by N156bn as Investors Book Profit

Nigerian Exchange Sinks by N156bn as Investors Book Profit

The equities market capitalisation of the Nigerian Exchange (NGX) dropped to N36.76 trillion as profit-taking activities wiped off more than N156 billion from the local bourse. The negative results on the exchange were driven by the bearish trend that prevailed in four out of five trading sessions this week, driven by profit-taking activities and selling sentiment.

Stockbrokers however maintained that the equities market may see fluctuations as early filers publish their third quarter of financial year 2023 earnings reports, with a combination of bargain hunting and portfolio repositioning influencing market dynamics.

Over a week, the stock total market capitalisation dropped by 0.42% week-on-week to N36.76 trillion, and the year-to-date return of the All-Share Index stood at 30.56%. Selloff’s engagement of the retail and institutional investors wiped out N156.34 billion from their portfolios due to profit-taking and sectoral rotation.  The loss was majorly driven by weak sentiment on Friday when equities investors recorded ₦100.75 billion daily loss.

The market index or the Nigerian Exchange All-Share Index decreased by 183.39 basis points today, representing a decline of -0.27% to close at 66,915.41 points on Friday.However, market activities were mixed, as the total volume traded for the day decreased by -31.07%, while the total value traded increased by +42.31%.

Approximately 205.89 million units valued at ₦6,380.22 million were transacted in 4,986 deals. FIDELITYBK was the most traded stock in terms of volume, accounting for 13.69% of the total volume of trades.

This was followed by FCMB (8.78%), ZENITH BANK (8.77%), UBA (6.52%), and FBNH (5.85%) to complete the top 5 on the volume chart. GEREGU was the most traded stock in value terms, with 50.12% of the total value of trades on the exchange.

THOMASWY topped the advancers’ chart with a price appreciation of 10.00 per cent. The company was trailed by IKEJAHOTEL (7.51%), OMATEK (+7.14%), AIICO (+4.48%), CUTIX (+4.07%), and nine others.

Twenty stocks depreciated on Friday, according to data from the local bourse. CADBURY was the top loser, with a price depreciation of -10.00%. On the list were FLOURMILL which fell by 9.03% SOVRENINS dropped by 8.33% and GUINEAINS lost 8.00%.

GEREGU declined by 7.22% while selloffs dragged UNILEVER backward by 5.23%. Trading results showed that the market breadth closed negative, recording 14 gainers and 20 losers.

Meanwhile, the market sector performance was relatively quiet, as two of the five major market sectors closed flat (the Industrial and Oil & Gas). The Banking and Insurance sectors rose by 0.12% and +0.08% respectively, while the Consumer goods sector dropped by -0.56%

On weekly comparison

Sectoral performance for the week was predominantly negative, as a bearish trend prevailed in four out of five trading sessions this week, driven by profit-taking activities and selling sentiment.

The banking sector was the exception, posting a 3.52% weekly gain. Trading activity concluded on a subdued note, with the weekly deal count decreasing by 1.30% week-on-week to 29,298 deals.

However, the average traded volume increased by 1.80%, reaching 1.50 billion units, while the weekly average value dipped significantly by 26.72% week-on-week to N17.90 billion. Throughout the week, investors showed keen interest in stocks like THOMASWY (+30), DAARCOMM (+10), JBERGER (+9), UBA (8), and DANGSUGAR (+5), with share prices RISING respectively, despite market volatility.

On the downside, SOVRENINS (-18), CADBURY (-16), STANBIC (-13), FLOURMILL (-12), and OKOMUOIL (-10) were the week’s laggards. Naira Devaluation Deepens Economic Crisis in Nigeria