NGX Market capitalization drop by N156bn due to Profit-taking
NIGERIA, Oct. 23 — The Nigeria Exchange Group (NGX) market capitalization drop by N156bn which caused investors on the equity market of their earnings at the close of last week’s trading following profits-taking and selling sentiments.
The market which as always been volatile was very reactive during the week, when the latest inflation data published by the National Bureau of Statistics (NBS) was seen, which pegged inflation figure for the month of September at 26.72 %, while awaiting more corporate earnings reports, which will offer insights into the upcoming third quarter (Q3) Gross Domestic Product (GDP) figures and the result of the listed companies for the entire year.
The All-Share Index and Market Capitalization of the NGX dropped by 0.42 % to close the week at 66,915.41 and N36.764tn. Similarly, all other indices finished lower except for NGX CG, NGX Premium, NGX Banking, NGX AFR Bank Value, NGX AFR Div. Yield, NGX MERI Value and NGX Sovereign Bond appreciated by 0.47 %, 0.54 %, 3.52%, 1.82 %, 3.24 %, 2.99 % and 3.08 % respectively while the NGX ASeM index was flat at the close of trading.
Trading activities on the floor of NGX ended on a negative note, with the weekly deal count decreasing by 1.30 %t week-on-week to 29,298 deals. Though, the average traded volume increased by 1.80 %, reaching 1.50 billion units, while the weekly average value dipped significantly by 26.72 % week-on-week to N17.90bn.
The activities chart was led by the Financial Services Industry (measured by volume) with 1.047 billion shares valued at N12.709bn traded in 13,667 deals; thus contributing 69.99 % and 52.34 % to the total equity turnover volume and value respectively. The ICT Industry followed with 94.997 million shares worth N1.445bn in 1,982 deals. The third place was the Conglomerates Industry, with a turnover of 80.655 million shares worth N526.409m in 1,459 deals.
The week ended with United Bank for Africa Plc, Fidelity Bank Plc and Access Holdings Plc. as the top three equities measured by volume, they accounted for 447.125 million shares worth N6.488bn in 4,913 deals, contributing 29.88 % and 26.72 % to the total equity turnover volume and value respectively.
Last week saw investors showing keen interest in stocks like Thomas Wyatt, Daar Communications, Julius Berger, United Bank for Africa and Dangote Sugar, with their share prices increasing by plus 29.64 %, 9.52 %, 9.09%, 8.26%, and 4.61 % respectively, not minding the volatility of the market.
The losers chart was topped by Sovereign Insurance, Cadbury Nigeria Plc, Stanbic IBTC Holdings, Flour Mills, and Okomu Oil whose share prices dropped by 17.50 %, 16 %, 13.06%t,11.88 %t and 9.96 % to close at N0.33, N12.60, N69.55, N28.20 and N236.80 respectively.
Analysts in the comments concerning the week ahead, said at Cowry Asset Management Limited projected that investors will continue profits-taking while market players await outstanding catalyst to boost activity, meaning mixed sentiments are expected to continue.
The weekly report said, “The market may see fluctuations as early filers publish their Q3 earnings reports, with a combination of bargain hunting and portfolio repositioning influencing market dynamic.”