Investors in the local equity market experienced a collective wealth reduction of N156 billion by the close of trading last week, as profit-taking and selling sentiments prevailed. This decline in market performance came amidst anticipation and response to significant economic indicators and corporate earnings reports.
The week’s trading sessions were characterized by reactions to the latest inflation data released by the National Bureau of Statistics, which reported a concerning 26.72% inflation figure for September. Additionally, investors were eagerly waiting for forthcoming corporate earnings reports, which would provide valuable insights into the forthcoming Q3 Gross Domestic Product figures and full-year results of publicly-listed companies.
The leading Nigerian stock exchange, NGX All-Share Index, recorded a decrease of 0.42% to conclude the week at 66,915.41 points, while the Market Capitalization slipped to N36.764 trillion. Simultaneously, other indices on the exchange experienced declines, with the exception of NGX CG, NGX Premium, NGX Banking, NGX AFR Bank Value, NGX AFR Div. Yield, NGX MERI Value, and NGX Sovereign Bond, which gained 0.47%, 0.54%, 3.52%, 1.82%, 3.24%, 2.99%, and 3.08%, respectively. The NGX ASeM index, on the other hand, closed the week unchanged.
Trading activities for the week concluded on a subdued note, with the weekly deal count declining by 1.30% week-on-week to 29,298 deals. However, the average traded volume increased by 1.80%, reaching 1.50 billion units. The weekly average value witnessed a significant dip of 26.72% week-on-week, amounting to N17.90 billion.
The Financial Services Industry led the activity chart based on volume, with 1.047 billion shares valued at N12.709 billion traded in 13,667 deals. This sector contributed significantly to the total equity turnover volume and value, accounting for 69.99% and 52.34%, respectively. The ICT Industry followed with 94.997 million shares worth N1.445 billion in 1,982 deals, while the Conglomerates Industry secured the third place with a turnover of 80.655 million shares worth N526.409 million in 1,459 deals.
The top three equities for the week were United Bank for Africa Plc, Fidelity Bank Plc, and Access Holdings Plc. These stocks, measured by volume, accounted for 447.125 million shares worth N6.488 billion in 4,913 deals, contributing 29.88% and 26.72% to the total equity turnover volume and value, respectively.
Throughout the week, investors displayed a heightened interest in stocks such as Thomas Wyatt, Daar Communications, Julius Berger, United Bank for Africa, and Dangote Sugar. These equities saw their share prices increase by +29.64%, +9.52%, +9.09%, +8.26%, and +4.61%, respectively, despite market volatility.
On the contrary, the losers’ chart featured Sovereign Insurance, Cadbury Nigeria Plc, Stanbic IBTC Holdings, Flour Mills, and Okomu Oil. These stocks witnessed share price declines of 17.50%, 16%, 13.06%, 11.88%, and 9.96%, closing at N0.33, N12.60, N69.55, N28.20, and N236.80, respectively.
Looking ahead, analysts at Cowry Asset Management Limited projected that investors would continue to engage in profit-taking activities, while market participants eagerly await a significant catalyst to boost overall market activity. In essence, mixed sentiments are expected to persist, and the market may see fluctuations as early filers publish their Q3 earnings reports. Bargain hunting and portfolio repositioning are poised to influence market dynamics in the coming week.
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