Stock Market Loses N280.5bn after 6-Week Gaining Streaks

Stock Market Loses N280.5bn after 6-Week Gaining Streaks

The Nigerian stock market tumbled after six weeks gaining streaks amidst uncertainties –rising inflation exposure and naira scarcity induces crisis including weak purchasing power of naira.

Market data show that the weekly loss of more than N280 billion was spurred by large selloffs in bellwethers and mid to small-cap stocks -notably, selloffs in Airtel Africa, Fidelity and Zenith Bank.

Nigerian Exchange’s number one market mover, Airtel Africa lost 6% after an impressive earnings performance in the financial year 2022. Its contemporary, MTN Nigeria however remain solid as analysts guide investors to keep positioning in the telecom stock.

Though, the local bourse slumped, some stockbrokers see the outing as intermittent, hoping to see a return to fresh gaining streaks due to a decline in yield in the fixed income market even while inflation continues to rise.

Consequently, the Nigerian Exchange All-share index fell 1.0% to 53,804.46 points week on week. Also, market capitalisation declined ₦280.5 billion to ₦29.3 trillion while year-to-date return weakened to 5.0%.

Stockbrokers said in their respective market briefs that average volume and value traded fell 20.4% and 9.4% week on week accordingly to 150.4 million units and ₦4.2 billion.

The most traded stocks by volume were GTCO (87.5 million units), UBA (81.8 million units), and BUAFOODS (50.5 million units) while BUAFOODS (₦3.8 billion), DANGCEM (₦2.8 billion), and GTCO (₦2.2 billion) led by value.

Market analysts said the performance was largely upbeat for most of the indices that saw support from an increased inflow of funds into the equity space and continued buying sentiments.

This drive excludes the banking index that was hit with profit-taking, which dragged the index into the negative region by 1.34% week on week.

There was an uptick in LINKASSURE (+7.1%), CORNERST (+1.7%), CONOIL (+10.0%), and OANDO (+2.6%). Trailing, buy interest in CADBURY (+4.8%), HONYFLOUR (+3.3%), TRIPPLEG (+45.3%) and CUTIX (+2.4%)

Investor sentiment, measured by market breadth, improved to 0.1x from -0.3x in the prior week, as 34 stocks gained, 27 lost while 91 closed flat amidst rising inflation numbers, which printed 21.82% for January, and declining rates and yields in the fixed income market.

TRIPPLEG (+45.3%), LIVINGTRUST (+16.2%), and CHAMS (+16.0%) led the top gainers while CWG (-17.3%), FIDELITY (-14.7%) and PHARMDEK (-10.0%) led the decliners.

The level of market trading activities was varied as we saw the total number of deals decrease by 14.8% week on week to 15,822 as stockbrokers recorded a 20.13% decline in trade volumes to 751.9 million units valued at N13 .21 billion,

Meanwhile, the top-gaining securities for the week were CHAMS (+16%), CONOIL (+10%), and MRS (+8%), while the week’s losers were FIDELITYBNK (-15%), NGXGROUP (-9%), and TRANSCORP (-7%). # Stock Market Loses N280.5bn after 6-Week Gaining Streaks

Naira Depreciates to N462 at Investors, Exporters FX Window

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