N847bn lost as equity market extends downtrend

The Nigerian equity market extended its downtrend to the second consecutive week, losing N847.03bn, due to sell-offs.

The All-Share Index and market capitalisation declined by 1.51 per cent, closing the week at 97,100.31 points and N55.13tn, respectively.

Investors traded 2.03 billion shares valued at N42.16bn in 45,157 deals, compared to 2.68 billion shares worth N49.02bn exchanged hands in 47,451 deals in the previous week.

Leading the activity chart was the financial services industry, accounting for 1.38 billion shares valued at N25.65bn traded in 20,132 deals, contributing 67.73 per cent of the total equity turnover volume and 60.85 per cent of the total value.

The oil and gas industry followed with 276.73m shares worth N6.03bn in 6,848 deals, while in third place was the services industry, with 101.22 million shares valued at N682.06 million, traded in 2,475 deals.

The most actively traded stocks were Guaranty Trust Holdings Company, Veritas Kapital Assurance, and Japaul Gold & Ventures, with a combined total of 674.233m shares valued at N16.055bn in 3,977 deals, representing 33.16 per cent of the total turnover volume and 38.08 per cent of the total value.

There was a slight increase in trades involving exchange-traded products, with 149,795 units worth N7.995m traded last week across 139 deals, which was higher compared to the prior week’s 20,375 units worth N5.912m traded in 148 deals.

Most market indices also finished lower, except for the insurance, consumer goods, oil & gas, lotus II, and growth indices, which recorded gains of 0.79 per cent, 0.37 per cent, 5.25 per cent, 0.42 per cent, and 6.14 per cent, respectively. The ASeM index remained unchanged.

In terms of price movements, 39 equities appreciated last week, a decline from the 46 gainers recorded the previous week.

Conversely, 66 equities saw price declines, up from 38 in the prior week, while 46 equities remained unchanged, compared to 67 the week before.

R.T. Briscoe led the gainers, rising by 33.86 per cent, followed by TotalEnergies Marketing Nigeria Plc with a 19.69 per cent increase and Julius Berger Nigeria Plc, which saw an 18.18 per cent gain.

On the losing side, Cutix recorded the largest drop at 17.50 per cent, followed by BUA Cement with a 14.82 per cent decline, and Oando, which was down by 11.70 per cent.

During the week under review, the NGX lifted the suspension placed on the shares of Guinea Insurance on Monday, August 12.

Afrinvest’s analysts have predicted a continuous bearish trend as a result of the fluctuating mixed earnings.

“We anticipate an extended bearish outing, fuelled by the cautious reaction to the mixed H1 earnings performances and improved valuation of the FI instrument owing to the modest decline in the headline inflation rate in July,” the analysts noted.