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By Chukwuma Umeorah
Equites trading on the floor of the Nigerian Exchange Limited (NGX) started the week bearish as the benchmark All-Share Index (ASI) lost 0.73 per cent slashing investors’ wealth by N436.9 billion at the close of the market on Monday. The ASI settled at 103,659.81 basis points from an opening value of 104,421.23 basis points dragging the Year-to-Date gain to 39.65 per cent with total market capitalization at N56.721 billion.
The negative performance was due to sell-offs majorly in banking stocks including FBNH, UBA, SterlingNg, Fidelity Bank, Accesscorp, GTCO, Zenith bank, NB, Transcorp and 18 other stocks.
Futureview Research analysts predicted a mixed trading week with investors strategically positioning themselves amid market expectations for more upcoming earnings reports from listed companies.
The market showed a strong footing in the first month of the year gaining 39.65 per cent in January and the positive trend is expected to be sustained. Aurthur Stevens Asset Management Limited in its 2024 market outlook had projected a 35 per cent gain for the year. “The expectation is that the ASI might see up to 35 per cent growth for FY 2024. The substantial earnings growth is expected to sustain market sentiment and it is expected to outperform in response to inflation as well as positive corporate earnings report,” while PWC in its Nigeria Economic Outlook report for 2024 projected that “The capital market’s performance is expected to hover between 13-15 per cent which will be significantly lower than gains experienced in 2023.”
Meanwhile at the end of yesterday’s trading on the local bourse, a total of 841.5 million units of shares corresponding to a market value of N19.32 billion were actively exchanged in 13,674 deals. Compared with the previous trading day, the data represents an 11 per cent decline in volume, an 18 per cent decline in turnover, but a 19 per cent improvement in deals.
FBNH was the most active stock (when measured in volume) exchanging 332.29 million units of shares valued at N8.954 billion, followed by TRANCSORP which dealt 49.96 million shares at N812.13 million while OANDO exchanged 43.506 million shares at N637.1 million.
Market breadth was slightly negative as out of 124 equities which participated in trading it ended with 27 gainers and 28 losers.
On the performance board, MAYBAKER emerged the best performing stock with value appreciation of 10 per cent to close at N6.93, followed by CORNEST and CARDBURY which also gained 10 per cent each to close at N2.09 and N22 per share respectively.
Others on the gainers index were Daar Communications and MEYER which also rose by 10 per cent each to close the day’s trade at N0.77 and N4.73 per share respectively alongside 21 other stocks.
On the flip side, ABBEYBDS was the worst performing for the day as it lost 9.70 per cent in value closing at N2.70 per share, followed by LIVESTOCK losing 9.66 per cent at N1.87 per share while Fidelity Bank shed 9.37 per cent and ended the day at N11.60 per share.
