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Equities market loses N281bn in 3 trading sessions

The stock market lost in all three trading sessions and consequently closed negative 2.05 per cent, week-on-week to close at 30,432.13 points, having been on Eid el-Fitr holiday on Tuesday and Wednesday as declared by the Federal Government.

Similarly, market capitalisation decreased to N13.402 trillion from N13.683 trillion last week as the benchmark index declined by 2.05 per cent, week-on-week, signifying the highest weekly loss since the week ended April 5, 2019. Thus, the Month-to-Date and Year-to-Date losses increased to 2.05 per cent and 3.18 per cent.

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Analysing by sector indicates that all sectors indices declined during the week under revenue. Specifically, Oil & Gas dipped by 5.15 per cent, Insurance followed suit by 4.02 per cent decline; Industrial Goods, -2.89 per cent; Consumer Goods,  -1.21 per cent and Banking at -1.28 per cent loss, further signifying the negative sentiment in the week.

With the week’s performance, experts at Cordros reiterated their view that the blend of a compelling valuation story, together with positive macroeconomic picture leaves scope for market recovery in the medium term, thereby guiding investors to tread the cautious trading path in the short term.

In the week under review, a total volume of 796 million shares worth N12.54 billion were exchanged in 11,290 deals as compared to 1.08 billion shares valued at N18.11 billion in 16,396 deals in previous week.

The Financial Services Industry (measured by volume) led the activity chart with 578.032 million shares valued at N7.384 billion traded in 5,934 deals; thus contributing 75.17 per cent and 58.85 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 55.229 million shares worth N1.486 billion in 1,111 deals. The third place was Conglomerates Industry with a turnover of 48.332 million shares worth N227.418 million in 470 deals.

Trading in the Top Three Equities namely, Guaranty Trust Bank, United Bank for Africa Plc, and First City Monument Bank (measured by volume) accounted for 329.929 million shares worth N5.341 billion in 1,427 deals, contributing 42.90 per cent and 42.57 per cent to the total equity turnover volume and value  respectively.

Analyst at APT Securities, however, expect to see more updays opportunity for stocks that have shed weight in the week under review.

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