NSE Records Negative Return after Stocks Losing Streaks

NSE Records Negative Return after Stocks Losing Streaks

The Nigerian Stock Exchange, NSE, records negative year to date return after sustained losing streaks.

Sell-offs reported in the last four days wipes off early gains as conservative investors are pulling out from the market.

Market ended in red despite the bullish start at the first trading session of the week.

Consequently, the NSE All Share Index closed in the red, shedding 0.6% week on week to settle at 41,186.70 points.

Similarly, market upturns early gain as year to date loss 0.2% was recorded and market capitalisation declined ₦130.0 week on week to close at ₦21.0 trillion.

Trading activity waned as average volume and value traded fell by 42.6% and 22.9% week on week to 308.2 million units and ₦3.6 billion respectively.

The top traded stocks by volume were FBNH (229.1 million units), GUARANTY (110.6 million units), and ZENITH (99.2 million units) while GUARANTY (₦3.4 billion), ZENITH (₦2.5 billion), and FBNH (₦1.7 billion) topped trades by value.

Afrinvest said in a note that performance was bearish across sectors as 4 of 6 indices under its coverage closed in the red week on week.

The Insurance index led laggards, down 1.7% dragged by losses in LINKASSURE (-5.1%) and WAPIC (-5.1%).

Similarly, the Consumer and Industrial Goods indices fell 1.0% and 0.7% respectively due to sell pressures in VITAFOAM (-16.1%), DANGSUGAR (-3.6%), BETAGLAS (-9.7%) and CUTIX (-5.7%).

Price depreciation in MTNN (-1.1%) weighed on the AFR-ICT index, which declined 0.6%.

On the other hand, the Oil & Gas and Banking indices closed in the green, up 4.6% and 0.5% respectively due to buying interest in OANDO (+7.7%), SEPLAT (+7.1%), ETI (+4.5%), and FIDELITY (+3.3%).

Investor sentiment measured by the market breadth index strengthened to 1.3x from 0.3x recorded last Friday consequent on 37 stocks advancing against 29 that declined.

Pay Attention to Dividend Paying Companies, Impressive Results – FSDH

The top performing stocks for the week were PORT (+14.4%), JBERGER (+12.8%) and UCAP (+12.4%).

Meanwhile ROYALEX (-16.7%), VITAFOAM (-16.1%) and STANBIC (-14.0%) led laggards.

“In the coming week, we believe appetite for value stocks would increase in the near term as dividend season approaches.

“Nonetheless, we expect to see profit-taking activities at the start of the coming week”, Afrinvest stated.

NSE Records Negative Return after Stocks Losing Streaks