Mixed sentiments drive NGX’s N118bn loss

The Nigerian Exchange Limited recorded a loss of N118bn in the past week on the back of mixed sentiments in the market.

This culminated in a 0.20 per cent decline week-on-week in the All-Share Index which closed at 97,236.19 points.  Year-to-date, however, the ASI has still posted a 30.04 per cent return.

This move takes the index further away from the 100,000-point mark, reflecting investor caution amid ongoing economic challenges and policy shifts by both the fiscal and monetary authorities. The week was marked by fluctuating trading patterns across sectors, with the Industrial and Consumer Goods indices particularly impacted.

This negative performance was driven by sell-offs on tickers, including MTN Nigeria (-3.43 per cent week-on-week), Oando (-21.97 per cent WoW), Guaranty Trust Holding Company Plc (-3.07 per cent WoW), and Transcorp (-4.04 per cent WoW).

As the ASI dipped, the market capitalisation followed suit, decreasing by 0.20 per cent to settle at N58.92tn. This decline comes amid ongoing portfolio rebalancing and position-taking.

Despite the overall weak performance, some sectors outperformed the broader market. The NGX-Oil & Gas sector gained 5.43 per cent, driven by strong performances from stocks like Conoil, while the NGX-Banking sector rose by 2.81 per cent, buoyed by gains in AccessCorp, Ecobank Transnational Incorporated and Sterling Financial Holding Company.

The NGX-Insurance and NGX-Consumer Goods sectors also saw marginal gains of 0.11 per cent and 0.02 per cent, respectively, led by positive movements in stocks such as Sovereign Trust Insurance and May & Baker.

On the flip side, the NGX-Industrial Goods sector experienced notable sell-offs, with stocks like Abbey Builders, BetaGlass, UPDC and Cutix showing weak price movements, reflecting negative sentiment in the sector.

At the close of the week’s trading, total turnover of 6.468 billion shares worth N75.75bn in 48,804 deals were traded this week by investors on the floor of the Exchange, higher than 2.717 billion shares valued at N54.63bn that exchanged hands last week in 46,848 deals.

The Financial Services Industry (measured by volume) led the activity chart with 5.666 billion shares valued at N44.26bn traded in 23,268 deals; thus contributing 87.60 per cent and 58.44 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 245.722 million shares worth N15.88bn in 9,057 deals. Third place was the Agriculture Industry, with a turnover of 216.422 million shares worth N1.09bn in 1,653 deals.

Trading in the top three equities were Sovereign Trust Insurance Plc, Consolidated Hallmark Holdings Plc and United Bank for Africa Plc. Measured by volume, they accounted for 3.839 billion shares worth N20.91bn in 5,652 deals, contributing 59.36 per cent and 27.60 per cent to the total equity turnover volume and value, respectively.

On the week’s outlook, analysts at Cowry Assets Management Limited said the mixed sentiment is expected to persist as portfolio rebalancing continues.

“Despite the recent downturn, a near-term rebound is anticipated, although investor sentiment is expected to remain cautious. The release of October’s Consumer Price Index figures by the National Bureau of Statistics could further weigh on market sentiment, with persistent inflationary pressures and potential currency volatility keeping investors on the edge,” they said.