Investor wealth drops N18 billion as bears dominate stock market
Through Chinwendu Obienyi
Bearish sentiment dominated trading on the Nigerian Exchange Limited (NGX) floor last week, as the market posted losses in four of five trading sessions as a result of profit-taking activity.
This caused the All-Share Index (ASI) to drop 0.12% week-on-week (w / w) to close the week at 43,199.27 points, with the Month-to- Date (MTD) and Year-to-Date (YTD) return coming in at + 2.8 percent and + 7.3 percent, respectively. Notably, profit taking on shares of Total (-9.9%), GTCO (-7.5%), FBNH (-3.7%) and Nigerian Breweries (-2.8%) led to the loss weekly.
In addition, the market capitalization fell to 22.554 billion naira from 22.572 billion naira recorded in the previous trading session as investors lost 18 billion naira. Total turnover of 1.392 billion shares worth 27.886 billion naira in 19,990 transactions was traded by investors, compared to a total of 1.471 billion shares worth 20.941 billion naira who traded their hands in the previous trading week in 20,410 trades.
Commenting on the market performance, Cordros analysts said they expected a mixed market performance as bulls and bears are likely to be at a stalemate due to the opposing forces of bargain hunting activities. in stocks with attractive dividend yields before 2021. Full-year dividend declarations and intermittent profit-taking activity.
For their part, Afrinvest analysts said: “In the coming week we expect a poor performance as weak sentiment persists.
The financial services industry (measured by volume) dominated the activity chart with 1.082 billion shares valued at 11.579 billion naira traded in 11.612 transactions; thus contributing 77.72 percent and 41.52 percent to the volume and value of total stock sales, respectively.
The consumer goods industry followed with 105.796 million shares valued at 11.831 billion naira in 2,657 deals, while the conglomerate industry recorded sales of 56.136 million shares of naira. ‘worth 73.687 million naira in 575 transactions.