Despite strong sector performances from oil & gas and banking stocks, the Nigerian Exchange Limited recorded a loss of N118bn last week, driven by sell-offs and investor caution amid ongoing economic challenges.
The Nigerian Exchange Limited (NGX) experienced a setback last week, with the market recording a loss of N118bn, reflecting mixed sentiments among investors.
The All-Share Index (ASI) declined by 0.20% week-on-week, closing at 97,236.19 points. However, on a year-to-date basis, the ASI still posted a solid return of 30.04%.
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The dip in the index indicates investor caution, as the market moved further from the 100,000-point mark.
This retreat occurred amid ongoing economic challenges and policy shifts from Nigeria’s fiscal and monetary authorities, leading to fluctuating trading patterns across various sectors.
The Industrial and Consumer Goods indices were particularly impacted by these fluctuations.
The decline was driven by sell-offs in major stocks, including MTN Nigeria (-3.43% week-on-week), Oando (-21.97% WoW), Guaranty Trust Holding Company Plc (-3.07% WoW), and Transcorp (-4.04% WoW).
As a result, the market capitalisation dropped by 0.20%, settling at N58.92tn, reflecting ongoing portfolio rebalancing and position-taking by investors.
Despite the overall downturn, certain sectors showed resilience. The NGX-Oil & Gas sector saw a strong 5.43% gain, buoyed by impressive performances from stocks like Conoil.
The NGX-Banking sector also rose by 2.81%, supported by gains in stocks such as AccessCorp, Ecobank Transnational Incorporated, and Sterling Financial Holding Company.
Other sectors also saw marginal gains, with the NGX-Insurance and NGX-Consumer Goods indices climbing by 0.11% and 0.02%, respectively, driven by positive movements in stocks like Sovereign Trust Insurance and May & Baker.
Conversely, the NGX-Industrial Goods sector saw notable sell-offs, with stocks like Abbey Builders, BetaGlass, UPDC, and Cutix reflecting weak price movements, indicating negative sentiment within the sector.
The week’s total turnover reached 6.468 billion shares valued at N75.75bn, a significant increase compared to the 2.717 billion shares worth N54.63bn traded the previous week.
The Financial Services Industry led the volume chart with 5.666 billion shares valued at N44.26bn, contributing 87.60% to total equity turnover volume and 58.44% to its value.
The Oil and Gas Industry followed with 245.722 million shares worth N15.88bn, while the Agriculture Industry saw a turnover of 216.422 million shares worth N1.09bn.
The most actively traded equities were Sovereign Trust Insurance Plc, Consolidated Hallmark Holdings Plc, and United Bank for Africa Plc, which accounted for 3.839 billion shares worth N20.91bn.
Looking ahead, analysts at Cowry Assets Management Limited predict that the mixed sentiment will continue as portfolio rebalancing persists.
While a near-term rebound is expected, investor caution is likely to remain, influenced by ongoing inflationary pressures and potential currency volatility.
The release of the October Consumer Price Index by the National Bureau of Statistics could further weigh on market sentiment, with investors remaining wary of potential economic challenges.
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