NSE Sheds ₦17.1 Billion as Investors Exit Positions

NSE Sheds ₦17.1 Billion as Investors Exit Positions

The Nigerian Stock Exchange, NSE, sheds ₦17.1 billion on Monday as more investors exit their positions –dumping shares- following yields adjustment in the fixed income market.

Some conservative investors, especially, the Pension Fund Administrators are adjusting portfolio as yields on fixed income assets rise.

After losing streaks in the past week, the equities market started the new week on a bearish note.

Specifically, the benchmark index fell 8 basis points (bps) to 40,154.09 points due to weak investors’ sentiment.

Driving the NSE Index decline was sell pressures in WAPCO (-8.0%), FIDELITY (-3.2%) and UCAP (-5.5%).

Accordingly, the year to date loss worsened to -0.3% while market capitalisation declined settle at ₦21 trillion.

Based on market data, trading activity was mixed as volume dipped 6.0% to 289.3 million units while value improved by 23.0% to ₦3.6 billion.

The most traded stocks by volume were FBNH (57.6 million units), UCAP (27.4 million units) and GUARANTY (26.8 million units).

Meanwhile GUARANTY trades came at ₦820.5 million, ZENITH ₦540.3 million and MTNN (₦464.7 million) to lead the value chart.

Mixed Sector Performance:

In market report, Afrinvest, a leading investment banking firm, said there was a mixed performance across sectors under its coverage.

The Banking and Oil & Gas indices gained 0.2% and 0.1% respectively due to price upticks in STANBIC (+3.4%), UBA (+1.2%) and OANDO (+1.0%).

Conversely, sell-offs in WAPCO (-8.0%) drove the Industrial Goods index lower by 0.6%.

The Insurance and Consumer Goods indices also declined 0.1% apiece as AIICO (-2.6%), NEM (-2.4%) and UNILEVER (-2.5%) lost.

In addition, the AFR-ICT closed flat.

Investor Sentiment Weakens:

Investor sentiment as measured by market breadth weakened to 0.8x from the 0.9x recorded previously as 19 stocks advanced against 25 decliners.

NSE charts indicates that UPDCREIT (+9.3%), CHIPLC (+9.1%) and ACADEMY (+8.6%) were the top gainers.

Then, AFRIPRUD (-9.6%), LASACO (-9.5%) and NIGERINS (-8.7%) were the top losers.

“We expect corporate earnings release to guide the direction of the market this week”, Afrinvest said.

Some conservative investors, especially, the Pension Fund Administrators are adjusting portfolio as yields on fixed income assets rise.

After losing streaks in the past week, the equities market started the new week on a bearish note.

Specifically, the benchmark index fell 8 basis points (bps) to 40,154.09 points due to weak investors’ sentiment.

Driving the NSE Index decline was sell pressures in WAPCO (-8.0%), FIDELITY (-3.2%) and UCAP (-5.5%).

Accordingly, the year to date loss worsened to -0.3% while market capitalisation declined settle at ₦21 trillion.

Based on market data, trading activity was mixed as volume dipped 6.0% to 289.3 million units while value improved by 23.0% to ₦3.6 billion.

The most traded stocks by volume were FBNH (57.6 million units), UCAP (27.4 million units) and GUARANTY (26.8 million units).

Meanwhile GUARANTY trades came at ₦820.5 million, ZENITH ₦540.3 million and MTNN (₦464.7 million) to lead the value chart.

Mixed Sector Performance:

In market report, Afrinvest, a leading investment banking firm, said there was a mixed performance across sectors under its coverage.

The Banking and Oil & Gas indices gained 0.2% and 0.1% respectively due to price upticks in STANBIC (+3.4%), UBA (+1.2%) and OANDO (+1.0%).

Conversely, sell-offs in WAPCO (-8.0%) drove the Industrial Goods index lower by 0.6%.

The Insurance and Consumer Goods indices also declined 0.1% apiece as AIICO (-2.6%), NEM (-2.4%) and UNILEVER (-2.5%) lost.

In addition, the AFR-ICT closed flat.

Investor Sentiment Weakens:

Investor sentiment as measured by market breadth weakened to 0.8x from the 0.9x recorded previously as 19 stocks advanced against 25 decliners.

NSE charts indicates that UPDCREIT (+9.3%), CHIPLC (+9.1%) and ACADEMY (+8.6%) were the top gainers.

Then, AFRIPRUD (-9.6%), LASACO (-9.5%) and NIGERINS (-8.7%) were the top losers.

“We expect corporate earnings release to guide the direction of the market this week”, Afrinvest said.

PFAs Ride on Yields Re-pricing to Adjust Risk Appetite

NSE Sheds ₦17.1 Billion as Investors Exit Positions