Investors in the Nigerian Exchange Limited (NGX) realised N500 billion last week as demand for undervalued stocks bolstered the Exchange.
In the four days trading week, the federal government declared the 15th public holiday to commemorate Easter celebrations, investors exchanged 1.247 billion shares worth N22.372 billion in 23,406 deals, in contrast to a total of 1.137 billion shares valued at N10.812 billion that exchanged hands in 23,471 deals in the previous week.
The Financial Services Industry led the activity chart with 975.776 million shares valued at N10.678 billion traded in 13,097 deals, therefore contributing 78.24% and 47.73% to the total equity turnover volume and value respectively.
The Consumer Goods Industry followed with 65.187 million shares worth N1.752 billion in 2,725 deals. In third place was the Services Industry, with a turnover of 42.614 million shares worth 135.745 million in
Guaranty Trust Holding Company Plc, Zenith Bank Plc and Fidelity Bank Plc were the three most traded equities last week, accounting for a combined 429.657 million shares worth N7.786 billion in 5,871 deals. The three contributed 34.45% and 34.80% to the total equity turnover volume and value respectively.
The NGX All-Share Index appreciated 1.99% or 926.99 index points from 46,631.46 index points in the previous week to 47,558.45 index points last week. While market capitalization also grew by 1.99% to close the week at N25.639 trillion, representing an increase of N500 billion.
Similarly, all other indices finished higher with the exception of NGX Asem, NGX Growth and Sovereign Bond indices which closed flat.
Fifty-one equities appreciated in price during the week, higher than Thirty-three equities in the previous week. Eighteen equities depreciated in price, lower than Thirty-one equities in the previous week, while eighty-seven equities remained unchanged lower than ninety-two equities recorded in the previous week.
The Exchange year-to-date return inched higher to 11.34%. See the details of gainers and losers below.
Investors Lose N720bn in Midweek Sell-Offs
Investors at the Nigerian Exchange Group lost N720 billion on Wednesday, the third consecutive day of bearish activity on the exchange.
The Exchange has now lost a combined N1.54 trillion in the last three days.
On Wednesday, the All-Share Index plummeted by 1.31% to 99,302.37 points while market capitalization dropped to N54.32 trillion. This downward spiral brought the year-to-date returns to 32.80%.
Market breadth remained negative with only five gainers compared to 52 decliners.
Notable gainers included PZ Cussons, Juli Plc, and Axa Mansard, while FCMB Group, Lafarge Africa, and Nigerian Breweries led the decliners with losses of 10% each.
Bearish sentiments spread across various sectors, particularly Banking, Insurance, and Consumer Goods, experiencing declines of 6.90%, 3.72%, and 1.20%, respectively.
The negative trend was fueled by sell-offs in prominent stocks like Sterling Financial Holdings, Wema Bank, and AccessCorp.
Despite improved trading volume and total deals, which rose by 41.28% and 15.40% respectively, the total traded value fell by 4.80% to N5.83 billion.
Transcorp Plc emerged as the most traded security by volume, while Zenith Bank led in traded value at N1 billion, indicating mixed sentiments among investors amidst market uncertainties.
FBN Holdings, Multiverse, MTN Nigeria Lead Losers on Nigerian Exchange
FBN Holdings, Multiverse, and MTN Nigeria emerged as the top losers on the Nigerian Exchange Limited (NGX) on Tuesday as market capitalisation dipped by N773 billion.
FBN Holdings, one of the most capitalized financial firms, declined by 10% to close at N30.60 per share.
This drop comes after the company had recently risen to prominence in the financial sector.
Multiverse, an active player in the industrial goods sector, also shed 10% to settle at N15.30 per share while MTN Nigeria saw its shares dip by 9.94% to N222.90 per share.
The downward trend in these key stocks contributed to the overall bearish performance of the Nigerian Exchange as the All-Share Index dipped by 1.39% and market capitalisation moderated to N55.04 trillion.
Market sentiment remained negative, with 27 losers outweighing 10 gainers, indicating widespread sell-offs across various sectors. Africa Prudential Plc, Omatek, and Juli Plc were among the few gainers.
Despite the challenges faced by these companies, market analysts remain cautiously optimistic about the prospects of the Nigerian Exchange.
They emphasize the importance of monitoring market dynamics and making informed investment decisions amidst the prevailing volatility.
As the Nigerian Exchange navigates through turbulent waters, investors are advised to exercise prudence and diligence in their investment strategies to mitigate risks and capitalize on potential opportunities that may arise in the market.
Nestle, Eterna, Fidson Drag Nigerian Exchange Down, Wiping Out N51bn
The Nigerian Exchange (NGX) opened the week in the red as Nestle Plc, Eterna, and Fidson Healthcare Plc closed lower to wipe out a combined N51 billion from the market capitalization.
Nestle Plc shed 10 percent to close at N990 per share while Eterna and Fidson Healthcare Plc plummeted by 9.97 percent and 9.82 percent to settle at N15.80 and N15.15 per share, respectively.
At the close of trading, the All-Share Index (ASI) dipped by 0.09 per cent to 101,995.53 points and the NGX market capitalization fell to N55.81 trillion.
This downturn reflects investors’ concerns about the stability of these key companies amidst broader economic uncertainties.
Analysts had anticipated a bearish sentiment as investors sought guidance from economic policymakers and corporate earnings reports.
With the NGX struggling to find solid footing, investors remain cautious about their portfolio allocations, especially with rising fixed-income yields and impending monetary policy decisions.
The trading session saw a marginal increase in transaction volume, rising by 1.14 percent to 294.32 million units.
However, the value of transactions surged by 12 per cent to N6.72 billion, indicating intensified trading activity despite the overall market decline.
Also, the number of deals rose by 29 percent to 9,957, showcasing heightened market participation.
While the banking sector recorded a modest 1.35 percent gain, driven by increased interest in FBN Holdings, JaizBank, and Sterling Financial Holdings Plc, other sectors faced challenges.
The consumer goods and oil/gas sectors experienced notable declines, contributing to the overall negative sentiment.
As market participants await corporate earnings reports and the outcome of the Monetary Policy Committee meeting, the NGX remains susceptible to volatility, highlighting the need for cautious investment strategies in the current economic landscape.
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