Nigerian Exchange Limited

Activity on Stock Market Declined Last Week Amid Weak Economic Fundamental

Nigeria’s stock market extended its decline last week as more economic data points to growing uncertainty amid slowing productivity.

Published

2 years ago

August 22, 2022

Samed Olukoya

Nigeria’s stock market extended its decline last week as more economic data points to growing uncertainty amid slowing productivity.

In the month of July, the National Bureau of Statistics (NBS) report showed that Nigeria’s inflation rate rose to 19.64%, the highest in 17 years.

This was after the Central Bank of Nigeria’s lead monetary policy committee raised the interest rate to 14%, an increase of 250 basis points in the last two months. The apex bank increased borrowing costs to curtail escalating inflation numbers, and simultaneously, lure foreign investors to the Nigerian economy to boost capital importation and augment Nigeria’s dwindling foreign reserves.

All these changes in economic fundamentals impacted investments in the capital market, one of the key economic indicators of the Nigerian economy, and the economy at large.

Last week, stock investors transacted 823.005 million shares worth N12.228 billion in 17,482 deals, in contrast to a total of 1.511 billion shares valued at N13.547 billion that exchanged hands in 20,074 deals in the previous week.

During the week, the Financial Services Industry led the activity chart with 561.683 million shares valued at N5.576 billion traded in 8,388 deals. Therefore, contributing 68.25% and 45.60% to the total equity turnover volume and value respectively.

The ICT Industry followed with 91.819 million shares worth N1.478 billion in 1,532 deals. In third place was the Consumer Goods Industry, with a turnover of 42.546 million shares worth N3.396 billion in 2,639 deals.

FBN Holdings Plc, E-Tranzact International Plc and United Bank for Africa Plc were the three most traded equities last week and together accounted for 323.474 million shares worth N2.520 billion that were exchanged hands in 1,457 deals. The three contributed 39.30% and 20.61% to the total equity turnover volume and value respectively.

The NGX All-Share Index declined by 0.59% or 293.45 index points to close at 49,370.62 index points from 49,664.07 index points it settled in the previous week.

The Market capitalization depreciated by N158 billion to N26.629 trillion, down from N26.787 trillion it closed in the previous week.

Similarly, all other indices finished lower with the exception of The NGX Premium, NGX Banking, NGX-AFR Bank Value and NGX Industrial Goods Indices which appreciated by 0.12%, 0.65%, 0.07 and 0.28% while, The NGX ASeM and Growth indices closed flat.

Twenty- one equities appreciated in price during the week, lower than Thirty- three equities in the previous week. Forty- one equities depreciated in price higher than Twenty- six in the previous week, while ninety-four equities remained unchanged lower than ninety-seven equities recorded in the previous week.

The Exchange year-to-date return declined further to 15.58%. See the details of top gainers and losers below.

Up Next

NAHCO Insiders Increase Stake in Company

Don't Miss

Stock Market Extends Decline as Inflation Rises to 17-Year High in Nigeria

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Comments

Nigerian Exchange Limited

Nigerian Exchange Recovers from Early Week Losses, Market Value Hits N55.6 Trillion

Published

1 day ago

September 11, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) rebounded on Tuesday after opening the week in the red.

The NGX All-Share Index appreciated by 0.62 percent to 96,802.8 points while the market value of listed equities stood at N55.626 trillion.

Investors traded 406,194,548 shares valued at N13.313 billion in 12,241 transactions during Tuesday’s trading session.

Investors continued to show interest in Oando, which emerged as the most traded equity in both volume and value.

A total of 58,485,705 shares worth N5.521 billion were exchanged, with Oando’s stock appreciating by N6, or 6.7 percent, from N89.5 to N95.5 per share.

The second most traded stock on Tuesday was Access Holdings Plc with 30,379,481 shares valued at N557.65 million transacted.

However, Access Holdings’ shares lost 55 kobo, or 2.96 percent, declining from N18.95 to N18 per share.

The Exchange’s year-to-date (YtD) return improved to 29.46 percent.

SFS REIT led the gainers’ chart, increasing by N14.80, or 9.98 percent, from N148.35 to N163.15 per share. This was followed by Custodian Investment, which gained N1.10, or 8.87 percent, rising from N12.40 to N13.50, while RT Briscoe moved from N2.82 to N3.10 per share.

Nigerian Exchange Limited

Investors Lose N112 Billion as Equities Market Declines on Monday

Published

2 days ago

September 10, 2024

Samed Olukoya

The Nigerian equities market opened the week in the red as the Exchange shed N112 billion on Monday.

Investors traded 774,377,516 shares worth N14.65 billion in 10,412 transactions during the trading session.

The market value of listed stocks and the all-share index rose by 0.24 percent to settle at N55.28 trillion and 96,205.85 points, respectively.

Eterna led the gainers with a 10 percent increase, closing the day at N33.00 per share. This was followed by Tantalizers, which also saw a 10 percent rise to N89.50. Oando and FTN Cocoa Processors appreciated by 9.95 percent and 9.93 percent, respectively, closing at N89.50 and N1.66.

On the other hand, Learn Africa led the losers with an 11.18 percent decline, dropping to N4.13 per share.

Julius Berger Nigeria followed, losing 10 percent to close at N153.45. Transcorp Power shed 9.99 percent to settle at N301.70, while McNichols dropped 9.4 percent to close at N1.35.

Further analysis showed that Jaiz Bank was the most traded stock in terms of volume, with investors transacting 247 million shares. Zenith Bank, FBN Holdings, and Guaranty Trust Holding followed with 173 million shares, 41.5 million shares, and 33.9 million shares, respectively.

Last week, the Exchange lost N83 billion as the All-Share Index and market capitalisation dipped by 0.15 percent due to sell-offs in big stocks.

Nigerian Exchange Limited

Transcorp Power Extends Decline, Market Value Dips to N2.26 Trillion

Published

2 days ago

September 10, 2024

Samed Olukoya

Transcorp Power Plc on Monday extended its decline as the company’s directors offloaded their shares to increase liquidity.

The share dipped by 9.99% from N335.2 per share it opened the day to close at N301.7 a share.

Transcorp Power has been trading at about a 22% discount to its highest share price since listing, prompting investors to take profits before further potential market corrections.

The NGX now values Transcorp Power’s outstanding 7.5 billion shares at N2.262 trillion, down from its previous highs.

Market analysts believe this correction was inevitable, given the thin trading activity compared to the company’s substantial market value.

The drop is being viewed as a natural market adjustment, but the scale of the decline has left many investors and market watchers concerned about future movements in Transcorp Power’s stock price.

Despite the decline, Transcorp Power remains viable in the utilities sector, and the current market shake-up may present a buying opportunity for investors looking to capitalize on the lower price.

The company has yet to release an official statement addressing the stock decline, but market participants will be watching closely to see how Transcorp Power navigates this period of volatility.

Investors will also be keen to understand whether the company’s fundamentals can support a rebound in the near future, especially as the broader market faces challenges related to economic uncertainty and profit-taking activities.