By Chukwuma Umeorah
The Nigerian equities market commenced October on a negative note, with investors losing N539 billion in the first week of trading amid sustained caution over macroeconomic uncertainties.
The NGX All-Share Index fell by 0.95 per cent week on week (WoW) to close at 97,520.54 points, reflecting renewed selling pressure across key sectors like banking and industrial goods. This moderated the market’s Year-to-Date (YtD) return to 30.42 per cent.
Consequently, the market capitalisation dropped to N56.04 trillion as profit-taking activities persisted, particularly due to losses recorded in large-cap stocks namely Dangote Cement plc, Fidelity Bank, NASCON, FBN Holdings, Dangote Sugar among others. This weighed heavily on the indices as investors took a defensive stance, seeking to rebalance their portfolios in response to global and domestic economic headwinds.
The week’s trading was shortened to four sessions, as the Federal Government declared Tuesday, October 1, a public holiday in celebration of Nigeria’s Independence Day. Three out of the four trading sessions were negative. The market’s weak momentum was evident in the trading figures, as the volume of shares traded declined by 13.9 per cent WoW to 2.85 billion units. On the flip side, the value of transactions surged by 188.7 per cent to N132.63 billion, indicating that high-value trades drove activity during the period. Trading sessions were marked by increased deal-making, with 39,529 transactions recorded, a 20 per cent decrease from the prior week’s activity.
The bearish sentiment affected most market indices, with the NGX Premium Index declining by 2.19 per cent and the NGX Banking Index dropping by 0.74 per cent. The NGX Industrial Goods Index recorded the steepest fall of 6.84 per cent as major blue-chip stocks like Dangote Cement Plc shed N53.20 per share, closing at N478.80. Other notable decliners included FBN Holdings Plc and Fidelity Bank Plc, which lost 11.19 per cent and 13.33 per cent respectively.
On the flip side, some indices bucked the trend, with the NGX Insurance Index appreciating by 3.81 per cent, and the NGX oil/gas index rising by 7.29 per cent. The NGX growth index also gained 5.43 per cent, reflecting renewed investor interest in select growth stocks.
Top equities by volume included Guinness Nigeria Plc, United Bank for Africa Plc, and Japaul Gold & Ventures Plc, which together accounted for 1.708 billion shares valued at N110.766 billion. This represented 59.47 per cent of the total equity turnover volume and 83.40 per cent of the market value.
In the week under review, they were 45 gainers and 33 losers. In terms of individual stock performance, Deap Capital, Seplat Energy, and Tripple Gee emerged as the week’s top gainers, posting gains of 32 per cent , 21 per cent, and 20 per cent respectively. McNichols Plc topped the losers’ chart, dropping 15.63 per cent to close at N1.35.
Analysts at Cowry Research anticipate a recovery and a moderation in volatility, saying, “We anticipate a potential recovery in the local bourse as the market braces for the release of nine-month performance results from companies like Dangote Cement, MTN Nigeria, and Geregu Power. Investor focus will likely shift towards stocks with strong fundamentals.”