Investors in the Nigerian stock market lost N767 billion this week as uncertainty amid the increase in interest rate weighed on the Nigerian Exchange Limited (NGX).
In the four days trading week, investors exchanged 940.892 million shares worth N11.494 billion in 20,077 deals, against a total of 1.831 billion shares valued at N19.494 billion that exchanged hands in 21,723 deals last week.
Breaking down key sectors, the Financial Services Industry led the activity chart with 692.325 million shares valued at N6.220 billion traded in 10,615 deals. Therefore, contributing 73.58% and 54.12% to the total equity turnover volume and value, respectively. The Conglomerates Industry followed with 89.872 million shares worth N 246.063 million in 764 deals.
In third place was the Consumer Goods Industry with a turnover of 54.227 million shares worth N1.232 billion in 2,923 deals.
United Bank for Africa Plc, Sterling Bank Plc and Transnational Corporation Plc were the three most traded equities during the week. The three accounted for 304.837 million shares worth N1.285 billion in 2,103 deals and contributed 32.39% and 11.18% to the total equity turnover volume and value, respectively.
The market value of all listed equities declined by N767 billion to N27.914 trillion, down from the N28.681 trillion it closed last week. The NGX All-Share Index dipped by 2.68% or -1,423.30 index points from 53,201.38 index points it closed last week to 51,778.08 index points this week.
Similarly, all other indices finished lower with the exception of the NGX Growth index which appreciated at 2.79% while the NGX Asem index closed flat.
Thirteen equities appreciated in price during the week, lower than Twenty-nine equities in the previous week. Fifty-one equities depreciated in price higher than Thirtysix equities in the previous week, while ninety-two equities remained unchanged higher than ninety-one equities recorded in the previous week.
Year to date, the Exchange has gained 21.21% and 10.25% in this second quarter. See the details of losers and gainers for the week.
Nigerian Exchange Sustains Bullish Momentum, Adds N305bn to Investors’ Wealth
The Nigerian Exchange Limited (NGX) continued its bullish run on Wednesday as investors gained N305 billion.
The Exchange has now gained N471 billion in the last two trading sessions following a N259 billion decline recorded on Monday due to the plunge in the value of some medium-cap stocks.
At the close of trading on Wednesday, the All-Share Index and market capitalization rose by 0.78% to 71,808.64 and N39.294 trillion, respectively.
The year-to-date gains of the index rose to 40.11%.
A total of 34 stocks closed in the green against 22 that closed in the red as a total of 121 stocks exchanged hands during the day.
This positive momentum was primarily driven by share price appreciation from top gainers, including Thomas Wyatt (9.93%), FBN Holdings (9.91%), Multiverse (9.90%), Ecobank Transnational Incorporated (9.88%), and Infinity Trust Mortgage Bank (9.70%).
However, some stocks experienced losses, including Axa Mansard Insurance, Guinea Insurance, and Oando Plc, with share dips of 9.69%, 9.68%, and 9.13%, respectively.
Sectorial performances varied with NGX Insurance, NGX Consumer Goods, and NGX Industrial Goods indices recording losses, while the Oil/Gas sector reported a lull performance.
Notably, tier I banking stocks fueled the Banking sector to a substantial 5.01% gain, with GTCO, United Bank for Africa, AccessCorp, and Zenith Bank leading in volume and value, contributing to the overall market bullishness.
Positive trading activity continued, with a 19.90% increase in total deals, 59.15% rise in volume, and an 8.88% uptick in value, totaling 8,412 deals, 690.01 million units, valued at N12.10 billion.
GTCO emerged as the most actively traded security in terms of volume and value, with 76.70 million units worth N3.04 billion exchanged in 260 deals.
Global Markets Face Headwinds as European Equities Drop Amid Economic Concerns
European equity experienced a decline following losses in Asian shares, the pressure created by weak oil prices and growing apprehensions about China’s economic outlook.
The Euro Stoxx 50 contract fell by 0.5%, mirroring a broader trend of cautiousness in the markets.
The drop in Asian stocks from Hong Kong to mainland China and Australia followed a third consecutive daily decline for the S&P 500 and contributed to a general atmosphere of market uncertainty.
Treasury yields rose after a previous drop, with the 10-year note experiencing its lowest levels since August.
The shift in sentiment was evident in a seven-basis-point jump, in tandem with a selloff in Japanese sovereign debt.
Energy producers faced declines due to oil reaching its lowest point since June amid oversupply concerns.
Also, Moody’s Investors Service’s downgrade of its outlook on several Chinese companies, coupled with worries about the nation’s debt burden, contributed to equity weakness.
A surprise contraction in China’s imports in November further fueled concerns about the economic slowdown.
Investors are now eyeing Friday’s US jobs report following private payrolls data that fell short of estimates, indicating potential softening in the employment market.
Meanwhile, oil stabilized after a five-day losing streak, and focus is on the upcoming OPEC+ production plans.
The dollar remained relatively steady against major currencies, and as markets await the Federal Reserve’s meeting next week, there is anticipation regarding potential shifts in market expectations based on quarterly forecasts.
In corporate news, Apple Inc. is preparing for new models and upgrades, aiming to reverse declining sales, while Advanced Micro Devices Inc. targets the artificial intelligence market dominated by Nvidia Corp.
Gold extended gains and bitcoin traded below $44,000, a level not seen since June last year.
Nigerian Exchange Rebounds with N166bn Gain, Led by Key Banking and Tech Stocks
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