Investors lose N2.29bn in one week over profit-taking
The domestic equities market extended losses into a second consecutive week by N2.29 billion on sustained investors selloffs in Dangote Cement Plc, BUA Cement Plc, among others.
The price of Dangote Cement depreciated by 9.9 per cent, as BUA Cement’s price on the Nigierian Exchange Limitied (NGX) dipped by 10 per cent.
On this, the benchmark NGX All-Share Index depreciated by 0.77 per cent week-on-week to close at 144,628.20 basis points, whiile market capitalisation dropped by by N2.29 trillion to N89.209 trillion, reducing the year-to-date return to 37.00 per cent.
The prevailing downturn dampened investor sentiment, as reflected in a weak market breadth, with 43 gainers against 54 decliners. Austin Laz & Company led the gainers table by 20.83 per cent to close at N2.90, per share. NCR Nigeria followed with a gain of 20.69 per cent to close at N10.50, while Nigerian Enamelware went up by 19.45 per cent to close to N39.00, per share.
On the other side, Thomas Wyatt Nigeria led the decliners table by 18.92 per cent to close at N3.00, per share. NEM Insurance followed with a loss of 18.15 per cent to close at N26.60, while Stanbic IBTC Holdings declined by 15.39 per cent to close at N94.00, per share.
Overall, a total turnover of 4.773 billion shares worth N107.426 billion in 152,965 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 8.564 billion shares valued at N99.936 billion that exchanged hands previous week in 177,870 deals.
This week, Cowry Asset Management Limited said, “we expect the Nigerian equities market to trade mixed, with cautious sentiment dominating overall performance. Persistent pressure on Banking and Industrial Goods stocks may continue to weigh on the market, especially as investors remain wary of macroeconomic headwinds and tight liquidity.
“However, bargain-hunting in oversold counters, particularly within the Consumer Goods sector, could trigger mild recoveries. Absent any major policy pronouncements or positive earnings releases, market activity is likely to remain subdued, with the NGX All-Share Index projected to move within a narrow band.”
United Capital Plc noted that “we have positive expectations that financial services sector (banking, insurance and other non-banking) may remain the toast of investors. Expectations of strong earnings from manufacturing sector may continue to drive positive sentiment in the broader market.”
