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The stock market segment of the Nigerian Exchange Limited (NGX) depreciated by N158billion on its Week-on-Week (WoW) performance in market capitalisation over investors profit-taking in Okouoil Plc, Accesscorp Plc, among others.
The dropped in market capitalisation to N26.629 trillion from N26.787 reflected bearish sentiments persisted for the second consecutive week.
Accordingly, the NGX All-Share Index shed 0.6per cent WoW to close at 49,370.62 basis points. Particularly, investors profit-taking in Okomu Oil that dropped by 10 per cent, Accesscorp that declined by 5.7 per cent and Lafarge Africa down by 10 per cent, drove the weekly market decline
Consequently, the stock market Month-till-Date (MTD) loss increased to negative two per cent, while the Year-till-Date (YTD) gain moderated to 15.6per cent.
Likewise, activity levels mirrored the overall market broad gauge, as trading volume and value declined by 45.5per cent WoW and 9.7per cent WoW, respectively.
Sectoral performance was mixed, as the Banking (+0.7per cent), Consumer Goods (+3.0 per cent), and Industrial Goods (+0.3 per cent) indices advanced, while the Insurance (-1.4 per cent) and Oil and Gas (-0.9 per cent) indices declined.
According to analysts at Cordros Research, “We expect market performance to remain mixed in the coming week as investors rotate their portfolios towards stocks with attractive dividend yields, which could be matched by intermittent profit-taking activities.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”
However, the weekly market report of the NGX stated that a total turnover of 823.005 million shares worth N12.228 billion in 17,482 deals was traded last week by investors on the floor of the Exchange
The report stated that, “the Financial Services Industry (measured by volume) led the activity chart with 561.683 million shares valued at N5.576 billion traded in 8,388 deals; thus contributing 68.25 per cent and 45.60per cent to the total equity turnover volume and value respectively.
“The ICT Industry followed with 91.819 million shares worth N1.478 billion in 1,532 deals. The third place was the Consumer Goods Industry, with a turnover of 42.546 million shares worth N3.396 billion in 2,639 deals.”
The report added that trading in the top three equities namely FBN Holdings Plc, E-Tranzact International Plc and United Bank for Africa Plc (measured by volume) accounted for 323.474 million shares worth N2.520 billion in 1,457 deals, contributing 39.30per cent and 20.61 per cent to the total equity turnover volume and value respectively.
