NGX: Profit taking takes toll on local bourse as investors lost N177bn WoW

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Despite predictions that the release of earnings of big banks and the declaration of interim dividends might drive buying sentiments at the local bourse last week, the bears consolidated their hold on the as investors booked profit across high capitalised stocks throughout the week.

Thus, the All-Share Index (ASI) of the Nigerian Exchange Limited (NGx) shed 0.9 per cent Week-on-Week (WoW) to close at 38,921.78 basis points.

Precisely, sell-offs in Airtel Africa, Flour mills of Nigeria, Guaranty Trust Holding Companies company and Stanbic IBTC Holdings drove the weekly loss, as the share prices depreciated by 4.7 per cent, 3.5 per cent, 2.9 per cent and 2.4 per cent, respectively.

Consequently, the Month-to-Date (MTD) and Year-to-Date (YTD) losses increased to -0.8 per cent and -3.3 per cent, respectively.

Equities investors, therefore, lost N177 billion as the overall market’s worth settled at N20.279 trillion on Friday, having shed 0.86 per cent during the five-day trading activities.

Last week, performance across sectors was mixed as the Oil and Gas, and Consumer Goods indices recorded gains by 2.3 per cent and 0.3 per cent respectively, while the Insurance and Banking indices declined by 3.4 per cent and 1.0 per cent respectively. The Industrial Goods index closed flat.

Despite the negative sentiments that ruled trading last week, activity levels were stronger, as trading volumes and value rose by 7.9 per cent WoW, and 52.1 per cent WoW, respectively.

A total turnover of 1.426 billion shares worth N13.073 billion in 19,315 deals was traded by investors on the floor of the Exchange, during the week under review. This is in contrast to a total of 1.338 billion shares valued at N8.650 billion that exchanged hands in 19,830 deals during the penultimate week.

The Financial Services Industry, measured by volume, led the activity chart with 1.136 billion shares valued at N8.201 billion traded in 10,700 deals; thus contributing 79.68 per cent and 62.73 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 76.520 million shares worth N1.383 billion in 3,076 deals. The third place was Conglomerates, with a turnover of 58.222 million shares worth N186.293 million in 769 deals.

Measured by volume, FBN Holdings Plc, Access Bank Plc and Wema Bank Plc, made the most traded stocks. They accounted for 626.756 million shares worth N4.458 billion in 2,802 deals, contributing 43.95 per cent and 34.10 per cent to the total equity turnover volume and value respectively.

Looking ahead, analysts anticipate cautious trading in the bourse following the MPC meeting coming up this week.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings,” Cordros Capital said in its report.

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