Bears persists at the NGX as investors lose N516bn in five days

Negative sentiments persist at the Nigerian Exchange Limited (NGX) last week as the stock investors lost N516 billion.

The bears continued to dictate proceedings in the local bourse as the market suffered its second consecutive weekly loss having recorded losses in all of the week’s trading sessions.

The downtrend was attributable to sell-offs in Airtel Africa, Dangote Cement, BUA Cement and MTN Nigeria as they depreciated by 8.6 per cent, 3.9 per cent, 3.4 per cent and 1.2 per cent respectively.

The All-Share Index and Market Capitalisation depreciated by 2.56 per cent to close the week at 37,658.26 basis and N19.627 trillion respectively as against an opening of 38,648.91 basis points and N20.143.

Consequently, the MTD and YTD return dipped further into negative territory, settling at -2.0 per cent and -6.5 per cent respectively.

Elsewhere, Sectoral performance was broadly positive, following gains in the Banking, Consumer Goods and Oil and Gas indices, and declines in the Industrial Goods and Insurance indices.

Activity levels were however mixed, as trading volume rose by 2.5 per cent, while trading value declined by 0.5 per cent during the week under review.

Over the week under review, a total turnover of 1.006 billion shares worth N10.330 billion were exchanged in 17,165 deals. This was in contrast to a total of 981.147 million shares valued at N10.384 billion that exchanged hands in 15,001 deals over the penultimate week.

The Financial Services Industry led the activity chart with 646.404 million shares valued at N5.199 billion traded in 8,996 deals; thus contributing 64.26 per cent and 50.33 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 108.587 million shares worth N2.257 billion in 3,213 deals. The third place was Conglomerates Industry, with a turnover of 80.257 million shares worth N179.134 million in 614 deals.

Trading in the top three equities were Zenith Bank Plc, Transcorp Hotels Plc and Access Bank Plc. They accounted for 207.341 million shares worth N2.510 billion in 2,774 deals, contributing 20.61 per cent and 24.30 per cent to the total equity turnover volume and value respectively.

Despite the stock market trading in the red zone for two consecutive weeks, analysts believed that the bulls would make a re-entry in dividend-paying stocks ahead of H1-2021 dividend declarations, which intermittent profit-taking activities would match.

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Bears persists at the NGX as investors lose N516bn in five days