Bears retain grip on Nigerian stocks

Index movement at the floor of the Nigerian Exchange Limited, in the just concluded week, recorded the second consecutive decline.

The NGX All-Share Index and market capitalisation depreciated by 0.13 per cent and 0.12 per cent to close the week at 47,140.48 and N25.41tn respectively.

The bearish activities in the domestic equities market was sustained, as investors were mostly pessimistic early into the week, but showed a bit of positive momentum towards the end of the week, as few companies released their audited financial report for the year ended.

Profit taking was noticed on shares of CWG, Berger Paints Nigeria, NGX Group, LASACO Assurance, and Consolidated Hallmark Insurance, as their share prices moderated to top the losers’ table.

CWG shares dropped by 9.76 per cent to close at N1.11; Berger shares declined by 9,58 per cent to close at N7.55. Also, the NGX Group, LASACO and CHIPLC lost 8.49 per cent, 6.25 per cent and 6.15 per cent to close at N24.25, N1.05 and 0.61k respectively.

Sectoral performance showed that three of the five indices tracked closed in the red. The banking, oil and gas, and industrial indices fell by 0.74 per cent, 3.45 per cent and 0.32 per cent respectively to close at 450.09 basis points, 409.32 and 2,131.36 respectively.

However, the insurance and consumer goods indices rose by 1.05 per cent and 2.35 per cent to close at 187.80 and 592.59 points respectively.

During the week under review, a turnover of 1.71 billion shares worth N30.76bn in 24,767 deals was traded by investors on the floor of NGX, against the  1.331 billion shares valued at N22.7bn billion that exchanged hands the week before in 27,822 deals.

Measured by volume, the financial services industry led the activity chart with 1.064 billion shares valued at N12.20bn traded in 11,708 deals, and contributed 62.14 per cent and 39.66 per cent to the total equity turnover volume and value.

The consumer goods industry followed with 156.077 million shares worth N5.004bn in 4,877 deals, even as the conglomerates industry trailed behind with a turnover of 113.554 million shares worth N309.83m in 1,062 deals.

Trading in the top three equities namely Access Bank, Guaranty Trust Holding Company and Fidelity Bank, measured by volume, accounted for 500.778 million shares worth N7.46bn in 3,603 deals, and contributed 29.23 per cent and 24.23 per cent to the total equity turnover volume and value respectively.

Analysts are optimistic that in the new week, the equities market will rebound, as corporate organisations opted for 60-day filing option and have started releasing their audited full year 2021 results with stimulating dividend payouts.

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

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