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The Nigerian equities market extended its October losses to 1.59 per cent last week as declining stocks outnumbered gainers, with 55 equities shedding value against 20 that recorded price appreciation on the Nigerian Exchange Limited (NGX).
The NGX All-Share Index fell by 0.13 per cent to close at 247,222.27 points on Friday, October 23, from 247,539.73 points recorded at the end of the previous week, while market capitalisation closed at N160.519 trillion.
The decline reduced the market’s year-to-date return to 58.87 per cent, according to the NGX weekly market report. The number of declining stocks rose from 30 in the previous week to 55, while gainers dropped sharply from 50 to 20. A total of 71 equities closed unchanged, compared with 66 in the preceding week.
Despite the negative market breadth, trading activity increased in value and volume during the week. Investors traded 2.024 billion shares worth N110.773 billion in 173,113 deals, compared with 1.659 billion shares valued at N98.088 billion in 184,632 deals in the previous week. The value of transactions therefore rose by about 12.9 per cent, while volume increased by approximately 22 per cent.
However, the number of deals declined by about 6.2 per cent, indicating that the increase in turnover occurred alongside fewer transactions.
The financial services industry led trading by volume, accounting for 1.111 billion shares valued at N53.908 billion in 81,787 deals.
The sector contributed 54.89 per cent of total equity volume and 48.66 per cent of turnover value.
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The consumer goods industry followed with 394.039 million shares worth N9.811 billion traded in 17,912 deals, while the agriculture industry ranked third with 147.170 million shares valued at N2.821 billion in 7,462 deals.
Multitrex Integrated Foods Plc, Zenith Bank Plc and Livestock Feeds Plc were the three most traded equities by volume, accounting for 521.565 million shares worth N19.093 billion in 16,487 deals. Together, the stocks contributed 25.76 per cent of total equity turnover volume and 17.24 per cent of turnover value.
The insurance sector recorded the steepest decline among the sectoral indices, falling by 2.79 per cent during the week to 1,049.43 points. The oil and gas index followed with a 2.55 per cent decline to 6,035.77 points, while the banking index fell by 0.67 per cent to 2,515.47 points. The consumer goods index also declined by 0.55 per cent to 4,014.81 points, while the NGX Main Board Index shed 0.77 per cent to close at 10,721.06 points.
However, the industrial goods index gained 1.95 per cent to close at 10,646.68 points, making it the strongest-performing sectoral index during the week. The NGX Premium Index rose by 0.80 per cent, while the NGX Consumer Goods Index, NGX Growth Index and NGX Pension Broad Index recorded marginal gains of 0.04 per cent, 0.04 per cent and 0.03 per cent respectively.
On the gainers’ chart, ABC Transport Plc led with a 20.66 per cent appreciation, rising from N6.05 to N7.30 per share. Ava Capital Plc followed with a 17.74 per cent gain to N7.30, while Caverton Offshore Support Group Plc advanced by 17.07 per cent to N4.80 per share.
On the decliners’ chart, UPDC Real Estate Investment Trust led with a 17.26 per cent loss, falling from N21.15 to N17.50 per share. Omatek Ventures Plc declined by 12.50 per cent to N1.40, while University Press Plc shed 12.12 per cent to close at N4.35 per share.
Despite the recent weakness, the market maintained a positive year-to-date performance of 58.87 per cent as of October 23, reflecting the substantial gains recorded earlier in the year. However, the continued decline in the number of advancing stocks and the increase in decliners point to a broader retreat in share prices during the period under review.
