Investors’ Profit-taking Gingers N761bn Dip In Equities Market

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The Nigerian equities market closed in a negative position last week as investors’ profit-taking gingered a decline in the market capitalisation by N761 billion week-on-week (W-o-W).

 

Thus, the Nigerian Exchange Limited All-Share Index (NGX ASI) dipped by 1.36 per cent W-o-W to close at 98,233.76 points. Similarly, market capitalisation shed N761 billion W-o-W to close at N55.562 trillion.

 

Last week’s sectoral performance was predominantly skewed towards the negative territory, except for the NGX Industrial index, which recorded marginal gains of 0.07 per cent.

 

Conversely, the NGX Consumer Goods, NGX Oil & Gas, NGX Banking, and NGX Insurance indices witnessed declines of 1.18 per cent, 0.33 per cent, 0.07 per cent, and 1.01 per cent week-on-week, respectively.

 

However, the market breadth for the week was positive, as 40 equities appreciated, 37 equities depreciated, and 77 equities remained unchanged.

 

Tantalisers led the gainers table by 27.78 per cent to close at 46 kobo per share. FTN Cocoa Processors followed with a gain of 20.00 per cent to close at N1.62, while Presco went up by 15.31 per cent to close to N291.50 per share.

 

Conversely, PZ Cussons Nigeria led the drop by 26.97 per cent to close at N27.75 per share. McNichols followed with a loss of 20.18 per cent to close at 91 kobos, while Secure Electronic Technology declined by 16.95 per cent to close at 49 kobos per share.

 

Overall, a total turnover of 2.187 billion shares worth N50.667 billion in 45,277 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.941 billion shares valued at N32.644 billion that exchanged hands the prior week in 35,807 deals.

 

The Financial Services Industry (measured by volume) led the activity chart, with 1.428 billion shares valued at N28.850 billion traded in 24,418 deals, contributing 65.29 per cent and 56.94 per cent to the total equity turnover volume and value, respectively.

 

The Consumer Goods Industry followed with 385.661 million shares worth N9.919 billion in 5,826 deals, while the Conglomerates Industry traded a turnover of 133.697 million shares worth N1.715 billion in 3,271 deals.

 

Trading in the top three equities, United Bank for Africa (UBA), Nigerian Breweries, and Access Holdings (measured by volume), accounted for 1.020 billion shares worth N23.631 billion in 9,587 deals, contributing 46.63 per cent and 46.64 per cent to the total equity turnover volume and value, respectively.

 

Capital market analysts have predicted mixed performance for equities this week as bulls and bears vie for dominance. In contrast, market players remain attuned to corporate actions in anticipation of dividend income.

 

The local bourse relinquished its previous weekly gains as bearish sentiment resurfaced. This led to fluctuations in stock prices and prompted investors, particularly in consumer goods and insurance stocks, to engage in sell-offs. The decline can also be attributed to downbeat market sentiments as investors opted to offload shares in a sectoral rotation exercise.

 

On market outlook, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion, said, ” We expect mixed sentiments to continue in the face of low-price attraction, dividend investing, and reaction to Q1 numbers as Insurance corporate earnings are expected with dividend announcements while taking advantage of pullbacks to position and rebalancing portfolio.

 

“This is amid volatility and pullbacks that add more strength to upside potential. As such, investors should take advantage of price corrections and examine trends and events globally and domestically.”

 

Looking ahead to the new week, Cowry Assets Management Limited analysts said, “Mixed sentiment is anticipated in the market as bulls and bears vie for dominance, while market players remain attuned to corporate actions in anticipation of dividend income.

 

“Despite this, pockets of gains are expected as fiscal and monetary policies strive to steer the nation’s economy towards recovery, notwithstanding the forthcoming April 2024 CPI report and Q1 2024 Nigeria’s GDP report. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.”