Trading on the floor of the Nigerian Exchange Limited closed in the negative territory last week. This is contrary to the usual Santa Claus rally that the domestic stock market usually experienced, according to analysts.
The NGX All-Share Index and market capitalisation had depreciated by 0.21 per cent to close the week at 42,262.85 and N22.06bn respectively.
A total turnover of 965.061 million shares worth N12.46bn in 14,802 deals was traded during the week by investors on the floor of the NGX, in contrast to 1.317 billion shares valued at N15.33bn that exchanged hands in 18,292 deals.
During the week’s trading, sell-offs in the share prices of Julius Berger Nigeria, MRS Nigeria and Cornerstone Insurance fell by 9.88 per cent, 9.85 per cent and 9.80 per cent to close at N22.35, N12.35 and 46 kobo respectively to lead the losers’ table.
However, the share prices of Mutual Benefits Assurance gained 23.08 per cent to close at 32 kobo, even as Consolidated Hallmark Insurance and Union Bank also advanced by 20.69 per cent and 20.65 per cent to close at 70 kobo and N5.55 respectively to lead the gainers’ table.
The negative sentiment also saw the oil and gas index fell by 0.52 per cent to close at 348.81bps. However, overall sectoral performance failed to mirror the decline recorded in the benchmark index, as four other sub-indices tracked closed in green. The banking, insurance, consumer goods and industrial indices gained 0.10 per cent, 1.85 per cent, 0.78 per cent and 0.43 per cent to close at 395.76bps, 194.46bps, 554.68bps and 2,090bps respectively.
Market activity was weak, as deals, volume and value of stocks traded fell by 19.08 per cent, 26.72 per cent and 18.75 per cent to 14,802 deals, 965.06 million units and N12.45bn respectively.
In the week under review, stocks of the financial services industry dropped by 59.50 per cent and 39.03 per cent of the total equity turnover volume and value to 574.223 million shares valued at N4.861bn.
Similarly, trading in the shares of the consumer goods industry fell by 179.195 million in volume and N1.127bn in value to 30.307 million shares worth N1.67bn.
“In the new week, we expect the local bourse to be bullish, as investors position in dividend-paying stocks in the last three days of trading session in 2021,” said analysts at Cowry Asset Management.
Meanwhile, trading in the top three equities namely UAC of Nigeria, FBN Holdings and Sovereign Trust Insurance, measured by volume, accounted for 378,555 million shares worth N3.27bn in 14,802 deals, contributing 39.23 per cent and 26.22 per cent to the total equity turnover volume and value respectively.
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