Stock Market Down N366bn Week-on-Week Amid Profit-taking Activities

Kayode Tokede

The market capitalisation of the Nigerian Exchange Limited (NGX)  depreciated by N366 billion in its week-on-week (WoW) performance  amid investor profit-taking in BUA Cement Plc (3.5 per cent decline).   

As the NGX (ASI last week declined by 0.25 per cent WoW to close at 249,712.37 basis points. Consequently, the month-to-date and year-to-date returns moderated to +three per cent and +60.4per cent, respectively, reflecting increasingly cautious and risk-averse investor sentiment across the domestic bourse.

The market capitalisation fell by N366 billion to close N160.077 trillion  

The market breadth weakened further, closing negative, with 43 gainers versus 53 decliners, signalling limited and highly selective buying interest. 

Associated Bus Company led the gainers table by 44.82 per cent to close at N9.08, per share. Academy Press followed with a gain of 29.79 per cent to close at N9.15, while University Press went up by 28.00 per cent to close to N6.40, per share.

On the other side, Sovereign Trust Insurance led the decliners table by 22.45 per cent to close at N2.28, per share. Trans-Nationwide Express followed with a loss of 18.98 per cent to close at N5.72, while CAP declined by 14.85 per cent to close at N199.00, per share.

Meanwhile, a total turnover of 3.875 billion shares worth N161.757 billion in 334,745 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 7.772 billion shares valued at N374.040 billion that exchanged hands previous week in 402,945 deals.

The financial services industry led the activity chart with 2.410 billion shares valued at N69.712 billion traded in 126,919 deals: contributing 62.19 per cent and 43.10 per cent to the total equity turnover volume and value respectively.

The services industry followed with 409.306 million shares worth N5.409 billion in 25,908 deals, while the Oil & Gas Industry pulled a turnover of 294.859 million shares worth N31.496 billion in 26,738 deals.

Trading in the top three equities, Sterling Financial Holdings Company, Fidelity Bank and Access Holdings accounted for 1.092 billion shares worth N19.527 billion in 21,683 deals, contributing 28.18 per cent and 12.07 per cent to the total equity turnover volume and value respectively.

Capital market analysts expected trading on the Nigerian equities market to remain relatively muted this week, with sentiment lacking a major positive catalyst to drive a broad rebound.

The market closed last week on a subdued note, extending its bearish momentum as widespread losses in heavyweight counters dragged overall performance.

For this week, Cordros Securities Limited said, “we expect market activity to remain relatively subdued in the near term in the absence of a major positive catalyst to drive sentiment. Nonetheless, we do not rule out selective bargain hunting across fundamentally sound names following the recent moderation in prices.”

Looking ahead, Cowry Assets Management Limited stated that “the Nigerian equities market is expected to remain mixed and cautious in the near term, as weak sentiment and profit-taking continue to weigh on performance. 

“ Elevated fixed-income yields and macroeconomic uncertainties may limit broad-based gains, though selective buying could persist in fundamentally strong stocks, particularly in the banking and oil & gas sectors. Overall, trading activity is likely to remain stock-specific with continued short-term volatility.”