Nigerian Exchange Limited

NGX All-Share Index Declines to 97,100.31 Points as Investor Sentiment Shifts

Published

1 month ago

August 19, 2024

The Nigerian equities market closed lower last week with the NGX All-Share Index (NGXASI) falling by 1.51% to close at 97,100.31 points.

This decline reflects a shift in investor sentiment as market participants increasingly sought to capitalize on recent gains by offloading shares, particularly in the industrial and banking sectors.

The decline, observed during the trading week ending Friday, August 16, 2024, is a reversal from the previous bullish trend seen in the local bourse.

Investors’ decision to sell off large-cap stocks, primarily within the industrial and banking sectors, contributed significantly to the market’s downturn.

This retreat in investor confidence has led to a decrease in the year-to-date return to 29.85%, down from the highs earlier in the year.

Sector Performance

The week saw a contrasting performance across various sectors. While sectors such as NGX Insurance (+0.79% WoW), NGX Consumer Goods (+0.37% WoW), and NGX Oil & Gas (+5.25% WoW) posted gains, the industrial and banking sectors faced substantial losses.

Specifically, the NGX Industrial Index fell by 5.16%, and the NGX Banking Index saw a decline of 2.28%.

“Profit-taking activities were prevalent as investors reassessed their positions in response to recent market highs,” noted a report from Meristem Research. “This resulted in a mixed performance across sectors, with some areas showing resilience while others struggled.”

Market Statistics

Throughout the review week, 39 equities appreciated in price, a decrease from the 46 equities that saw gains the previous week.

Conversely, 66 equities depreciated in price, up from 38 in the preceding week. Additionally, 46 equities remained unchanged, compared to 67 recorded the week before.

The market capitalization of the Nigerian Exchange Limited (NGX) also took a hit, closing at N55.132 trillion.

This decline was mirrored across all indices except for the NGX Insurance, NGX Consumer Goods, NGX Oil & Gas, NGX Lotus II, and NGX Growth indices, which recorded positive movements of 0.79%, 0.37%, 5.25%, 0.42%, and 6.14% respectively.

Outlook

Looking ahead, analysts remain cautious about the market’s short-term outlook. The recent shift in investor sentiment and sector performance suggests that volatility may continue as market participants navigate evolving economic conditions and corporate earnings reports.

“The current market dynamics underscore the importance of closely monitoring sector-specific trends and broader economic indicators,” said an analyst at Meristem Research. “Investors should remain vigilant and consider diversification to mitigate risks associated with market fluctuations.”

As the market adjusts to these new conditions, all eyes will be on upcoming economic data and corporate earnings reports to gauge the potential for a market rebound or further declines.

Up Next

Stock Market Shows First Gain of the Week, Driven by Oando and Other Advancers

Don't Miss

Nigerian Equity Market Suffers N56bn Loss as Bearish Trend Extends to Fourth Day

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

Stock Investors Gain N131 Billion on Tuesday

Published

12 hours ago

September 18, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

Nigeria’s equities market opened the holiday-shortened trading week in green as investors bought banking and consumer goods stocks despite record profit taking in insurance, industrial, oil & gas stocks.

“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets and investors locking in on current rates, we expect some bearish undertone to persist in the equities market,” according to United Capital research analysts.

The analysts said the bulls “will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term (≥6 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns”.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation appreciated by 0.23 percent and N131billion from preceding day’s 97,456.62 points and N56.002 trillion respectively to 97,685.63 points and N56.133 trillion.

The market’s year-to-date (YtD) return rose to 30.64 percent.

According to Meristem research analysts, “While we expect subdued participation in the Nigerian equities market this week, we anticipate that buying activity will outweigh profit-taking. Our outlook is hinged on the belief that no major negative catalysts are expected to shift market direction this week. We anticipate that investors will continue selective buying, seeking opportunities across various sectors.

“Additionally, macroeconomic developments and corporate actions from companies could stimulate moderate buying interest in the market. We also do not foresee a significant shift towards the fixed-income market as yields have started to stabilize. However, we acknowledge the potential for profit-taking as short-term investors may look to capitalize on recent gains. Overall, we expect the market to close in the green zone this week,” Meristem analysts said.

Nigerian Exchange Limited

Nigeria’s Equities Market Gains 0.32% Boosted by Nestle, Flourmills, and FBN Holdings

Published

6 days ago

September 13, 2024

Investors King

Nigeria’s equities market rose by 0.32 percent or N178billion on Thursday, thanks to Nestle, Flourmills and FBN Holdings that led the league of major advancers on the Lagos Bourse.

FBN Holdings increased from N24 to N26.40, adding N2.40 or 10percent. Caverton rose from N2.10 to N2.31, up by 21kobo or 10percent.

Flour Mills moved from N45.05 to N49.55, up by N4.50 or 9.99percent. RT Briscoe increased from N3.02 to N3.32, down by 30kobo or 9.93 percent, while Nestle rallied from N810 to N890, N80 or 9.88percent.

At the close of trading, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and equities market capitalisation increased from 96,715.04 points and N55.575 trillion respectively to 97,025.17 points and N55.753 trillion.

Access Holdings, FBN Holding, UBA, Caverton and Zenith Bank shares were most trading stocks. In 9,615 deals, investors exchanged 390,546,861 shares valued at N7.974billion.

Ahead of Thursday’s trading, analysts said broader market sentiment will remain balanced, with risk-averse investors maintaining a cautious stance ahead of any major corporate earnings announcements.

Nigerian Exchange Limited

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

Published

1 week ago

September 11, 2024

Samed Olukoya

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.