NGX Starts the Week on a Negative Close

Local stocks at the Nigerian Stock Exchange started the week negatively after equities in Dangote Sugar Refinery Plc and 29 others dropped N239 billion in market capitalisation.

The NGX All-Share Index dropped by 511.02 points, or 0.49%, to close at 104,136.35 points. The overall market capitalisation value lost N289 billion to close at N58.880 trillion.

Price depreciation in large and medium-capitalisation stocks such as Transcorp Power, Ecobank Transnational Incorporated (ETI), Transnational Corporation (Transcorp), and FBNH Holdings was said to be the major reason for yesterday's negative market wave.

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As measured by market breadth, investor sentiment closed negative as 20 stocks advanced while 30 declined.

Top Gainers: Ellah Lakes led the chart with a 10% gain to close at N3.63 per share. Meanwhile, Morison Industries followed with a 9.93% gain to close at N1.55, and SUNU Assurance was up by 9.48% to close at N1.27 per share. Caverton Offshore Support Group rose by 9.38% to close at N1.75, while Secure Electronic Technology gained 9.09% to close at 60 kobo per share.

Top Losers: Dangote Sugar Refinery and International Energy Insurance led the chart by 10% each to close at N53.10 and N1.35, respectively, while Jaiz Bank followed with a decline of 9.92% to close at N2.18 per share. Ikeja Hotels lost 9.72% to close at N5.85, followed by DEAP Capital Management & Trust, which shed 9.52% to close at 57 kobo per share.

The total volume traded dipped by 39.34% to 306.822 million units, valued at N11.383 billion, and exchanged in 9,343 deals. Transactions in Nigeria Infrastructure Debt Fund (NIDF) shares topped the activity chart with 35.548 million shares valued at N4.052 billion.

Jaiz Bank traded 23.511 million shares worth N52.573 million, while United Bank for Africa (UBA) traded 19.539 million shares valued at N519.286 million.

Nigerian Breweries traded 17.435 million shares valued at N489.184 million, while Access Holdings transacted 15.285 million shares worth N363.869 million.

With such a start this week, analysts from United Capital Plc said, "We expect activities in the fixed-income market to continue to be key demotivators for equities investments.

"However, given the level of activity by the bulls in the market, pending the release of the financial statements of some corporates (particularly the top tier banks), the dividend season, and strong corporate resilience, we expect further bargain hunting for the rest of the week."

An Overview of How Equities Traded Last Week

Last week, equities on the Nigerian Stock Exchange market ended on a bearish note. The All-Share Index (ASI) lost 0.42% week-on-week (W-o-W) to close at 104,647.37 points, while market capitalisation declined by N248 billion W-o-W to close at N59.169 trillion.

The market's sectoral performance last week was positive, except for sectors like the NGX Consumer Goods index, which declined by 0.37% week-on-week. The NGX Banking, NGX Insurance, NGX Industrial, and NX Oil & Gas sectors experienced positive returns, which were driven by upward movements in the prices of key stocks.

A Look at Market Breadth for Last Week at the NGX

On market breadth for last week, the market saw a positive trend, as 50 equities gained in price, 32 equities depreciated, and 72 equities remained unchanged. 

A Look at the Chart for Last Week at the NGX

Top Gainers: Juli led the chart with 46.10%, closing at N7.86 per share. It was followed by NEM Insurance, which gained 45.11% to close at N9.65, and International Energy Insurance, which increased by 22.95% to close at N1.50 per share.

Top Losers: Julius Berger Nigeria led the chart with 17.15%, closing at N60.15 per share. DAAR Communications followed with a loss of 14.10%, closing at 67 kobo, and UPDC Real Estate Investment Trust lost 12.73%, closing at N4.80 per share.

A Look at Trade Volume for Last Week at the NGX

In total, investors traded 1.735 billion shares worth N48.755 billion in 45,237 deals on the Exchange floor last week.

The Financial Services Industry (measured by volume) led the activity chart with 1.273 billion shares valued at N31.077 billion traded in 23,066 deals, contributing 73.36% and 63.74% to the total equity turnover volume and value, respectively. The Conglomerates Industry followed with 123.237 million shares worth N1.772 billion in 3,205 deals, while the Consumer Goods Industry traded a turnover of 104.854 million shares worth N5.292 billion in 6,166 deals, the LEADERSHIP reports.

While trading in the top three equities, United Bank for Africa (UBA), FBN Holdings (FBNH), and Access Holdings (measured by volume) accounted for 564.882 million shares worth N16.990 billion in 8,493 deals, contributing 32.56% and 34.85% to the total equity turnover volume and value respectively.