Last week, investors in the local equity market experienced a decline in their wealth, amounting to N156 billion by the end of the trading period. This depreciation was primarily driven by profit-taking activities and negative selling sentiments prevailing in the market.
The market’s performance was notably influenced by the latest inflation data released by the National Bureau of Statistics, indicating that September’s inflation rate stood at a concerning 26.72 percent. Simultaneously, market participants were eagerly awaiting additional corporate earnings reports that would provide valuable insights into the upcoming Q3 Gross Domestic Product figures and the full-year results of publicly listed companies.
At the close of the week, the NGX All-Share Index and Market Capitalization fell by 0.42 percent, concluding at 66,915.41 and N36.764 trillion, respectively. Almost all other indices also experienced declines, except for the NGX CG, NGX Premium, NGX Banking, NGX AFR Bank Value, NGX AFR Div. Yield, NGX MERI Value, and NGX Sovereign Bond, which saw appreciations ranging from 0.47 percent to 3.52 percent, with the NGX ASeM index remaining flat.
Trading activity for the week concluded on a subdued note, with the weekly deal count decreasing by 1.30 percent week-on-week, amounting to 29,298 deals. Nevertheless, the average traded volume increased by 1.80 percent, reaching 1.50 billion units, while the weekly average value dropped significantly by 26.72 percent week-on-week, totaling N17.90 billion.
The Financial Services Industry, measured by volume, dominated the activity chart, with 1.047 billion shares valued at N12.709 billion traded in 13,667 deals, contributing 69.99 percent and 52.34 percent to the total equity turnover volume and value, respectively. The ICT Industry followed with 94.997 million shares worth N1.445 billion in 1,982 deals. The third place was secured by the Conglomerates Industry, with a turnover of 80.655 million shares worth N526.409 million in 1,459 deals.
The top three equities at the week’s conclusion were United Bank for Africa Plc, Fidelity Bank Plc, and Access Holdings Plc. These stocks, when measured by volume, accounted for 447.125 million shares worth N6.488 billion in 4,913 deals, contributing 29.88 percent and 26.72 percent to the total equity turnover volume and value, respectively.
Throughout the week, certain stocks garnered substantial investor interest, including Thomas Wyatt, Daar Communications, Julius Berger, United Bank for Africa, and Dangote Sugar, witnessing notable share price increases ranging from +4.61 percent to +29.64 percent, despite market volatility.
Conversely, the losers’ chart featured companies such as Sovereign Insurance, Cadbury Nigeria Plc, Stanbic IBTC Holdings, Flour Mills, and Okomu Oil, which experienced declines in their share prices ranging from 9.96 percent to 17.50 percent, closing at N0.33, N12.60, N69.55, N28.20, and N236.80, respectively.
Looking ahead, analysts at Cowry Asset Management Limited projected that investors would continue to engage in profit-taking activities, and market participants would await significant catalysts to boost market activity, thereby anticipating mixed sentiments to persist. The market may witness fluctuations as early filers publish their Q3 earnings reports, and a combination of bargain hunting and portfolio repositioning is likely to influence market dynamics, according to the weekly report.
