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By Chinwendu Obienyi
Proceedings at the Nigerian Exchange Limited (NGX) closed last week in the red as bouts of profit-taking in heavyweight stocks sent the All Share Index (ASI) down 0.67 per cent week-on-week (w/w).
In what can be regarded as a quiet trading week, the local bourse traded within tight bands before settling at 46,964.23 points owing to depreciation in the shares of Nestle, UBA, GTCO, MTNN and Lafarge.
Consequently, the market’s year-to-date (YTD) return fell to 9.9 per cent from 10.7 per cent in the preceding week while N172 billion was shaved off the market capitalisation w/w to close at N25.311 trillion.
Similarly, all other indices finished lower with the exception of NGX AFR Div Yield and NGX Meri Growth indices, which appreciated by 1.81 per cent and 0.01 per cent respectively While NGX ASeM and NGX Growth indices closed flat.
The negative sentiment also affected the sale of shares in the market as a total turnover of 1.176 billion shares worth N16.601 billion in 21,076 deals was traded by investors on the floor, in contrast to a total of 2.449 billion shares valued at N20.653 billion that exchanged hands in the previous week in 20,764 deals.
The Financial Services Industry (measured by volume) led the activity chart with 954.472 million shares valued at N10.217 billion traded in 12,700 deals; thus contributing 81.14 percent and 61.55 percent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 63.728 million shares worth N3.439 billion in 2,720 deals while the Conglomerates Industry recorded a turnover of 53.313 million shares worth N258.568 million in 711 deals.
Trading in the top three securities namely Fidelity Bank Plc, United Bank For Africa Plc, and Guaranty Trust Holding Company Plc (measured by volume) accounted for 456.971 million shares worth N4.469 billion in 4,982 deals, contributing 38.85 per cent and 26.92 per cent to the total equity turnover volume and value respectively.
Assessing the performance of the market, analysts say they expect the market to trade sideways when it resumes today as the activities of bargain hunters in dividend-paying stocks fizzle out due to the winding down of the 2021 full year earnings season.
Cordros Capital in an emailed research note said, “risk-averse investors will likely sustain profit-taking activities in anticipation of an uptick in FI yields. Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings”.
Twenty-four (24) equities appreciated in price during the week, higher than twenty-one (21) equities in the previous week. Forty-four (44) equities depreciated in price, lower than forty-five (45) equities in the previous week, while eighty-eight (88) equities remained unchanged lower than ninety (90) equities recorded in the previous week.
