Equities market dips by N476bn in one week
Investors lost an estimated N476.01 billion Week-on-Week (WoW) in market capitalisation as profit-taking rocked some blue-chip stocks quoted on the Nigerian Exchange Limited (NGX) .
Despite a significant capital infusion from Fidelity Bank’s N175.85 billion listing, the overall market value slipped 0.71per cent to N66.72 trillion from N67.19 trillion.
The NGX All-Share Index (NGX ASI) tumbled 1.19per cent to 106,538.60 basis points, as a mix of portfolio rebalancing and weak sentiment overshadowed upbeat corporate earnings. This downturn dragged the year-to-date (YTD) return on the NGX ASI down to 3.51per cent, reinforcing the market’s fragile state.
Trading activity mirrored the sluggish sentiment, with total volume dipping 1.62per cent to 1.82 billion shares and trade value plunging 8.10% to N47.23 billion. However, total deals inched up 1.79per cent to 64,222, signaling select investor interest.
Sectoral performance painted a grim picture, with five out of six tracked indices closing in the red. The banking sector bore the brunt of the rout, shedding 2.87per cent, followed by insurance (-2.33per cent) and consumer goods (-1.72per cent).
The oil and gas sector slid 0.19per cent, while industrial stocks remained largely flat. The lone bright spot was the NGX Commodity Index, which eked out gains, buoyed by rallies in Okomu Oil and Aradel Holdings.
On the stock-specific front, Tantalizer soared 36.3 per cent emerging as the week’s biggest gainer, followed by UHM REIT (+28.6per cent). Meanwhile, Eterna led the losers, plummeting 18.7per cent, alongside steep declines in Transcorp, FCMB, and Royal Exchange.
Commenting on the market turbulent outlook, analysts at Cordros research added that, “Looking ahead, we expect market volatility to persist as investors contend with delays in bank and insurance earnings filings and dividend announcements while also monitoring yield movement in the fixed income market.”
Also analysts at Cowry Assets Management Ltd stated that,“Looking ahead, the market braces for a showdown between bullish optimism and bearish caution. With top-tier banks set to unveil their audited financials, sentiment could shift.”
However, the overbought nature of the market suggests a measured approach. For savvy investors, patience and a sharp eye for value may be the keys to navigating the turbulence.
