Local stock market bows to profit-taking activities as investors lose N114bn in 5 days

Last week, equities trading at the Nigerian Exchange Limited (NGX) was bearish as the market sentiment was directed by profit-taking activities.

By Friday, the benchmark index had depreciated by 0.45 per cent to close at 46,631.46 basis points despite recording an impressive market breathe of 28 gainers as against 16 losers.

Also, market capitalisation depreciated by 0.45 per cent to close the week at N25.139 trillion as investors lost N114 billion during the five-day trading sessions having opened the week at N25.253 trillion.

Particularly, profit-taking activities witnessed in Nascon, Wapco, FBN Holdings and Dangote Sugar led the weekly loss as their respective share price depreciated by 8.8 per cent, 2.7 per cent, 3.3 per cent and 2.9 per cent.

On the. Other hand, share prices of tickers such as Ardova Plc, Meyer, Jaiz Bank, FCMB Group and RTBriscoe gained by 9.87 per cent, 9.71 per cent, 7.81 per cent, 7.17 per cent, and 7.14 per cent respectively.

Sectoral analysis indicated that all indices finished higher with the exception of NGX 30, NGX Insurance, NGX Consumer Goods, NGX Lotus II, NGX Industrial Goods, and NGX Sovereign bond indices, which depreciated by 0.43 per cent, 0.21 per cent, 0.35 per cent, 1.40 per cent, 0.42 per cent and 0.05 per cent respectively While NGX Asem, and NGX Growth indices closed flat.

ALSO READ FROM  NIGERIAN TRIBUNE

• I Lied To Police That I Killed My Husband To Make Him Allow Me Visit My Dad —Woman Who Claimed She Stabbed Spouse To Death
  
• Kidnappers Set Up Camp In Lagos, Invade Estate Twice In Three Days, Kill Two, Abduct Three

Meanwhile, market activity remained weak as the volume and value of stocks traded plunged by 39.80 per cent and 52.07 per cent to 1.13 billion units and N10.81 billion respectively. However, deals rose by 6.12 per cent to 23,471.

According to reports from NGX, a total turnover of 1.137 billion shares worth N10.812 billion in 23,471 deals was traded by investors during the week under review, in contrast to a total of 1.289 billion shares valued at N13.546 billion that exchanged hands in 22,118 deals in the penultimate week.

The Financial Services Industry, measured by volume, led the activity chart with 798.246 million shares valued at N6.732 billion traded in 12,904 deals; thus contributing 70.23 per cent and 62.26 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 155.154 million shares worth N228.975 million in 917 deals. The third place was The Consumer Goods Industry, with a turnover of 45.341 million shares worth N1.013 billion in 2,819 deals.

Fidelity Bank Plc, Transnational Corporation Of Nigeria Plc, and Zenith Bank Plc were the top three equities traded during the week as they accounted for 454.800 million shares worth N2.551 billion in 4,587 deals, contributing 40.01 per cent and 23.60 per cent to the total equity turnover volume and value respectively.

Looking ahead, analysts expect savvy investors to take advantage the bears and make re-entry ahead of 2022 first-quarter earnings announcements.

“With the moderation in the prices of bellwether stocks this week, Considering that the 2021FY earnings season has run its course, we now expect investors’ sentiment to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed income space. Overall, we advise investors to take positions in only fundamentally sound stocks as the weak macro story remains a significant headwind for corporate earnings,” Analyst at Cordros Capital advised.

How Workplace Sexual Harassment Forces Many Out Of Their Dream Jobs

Local stock market bows to profit-taking activities as investors lose N114bn in 5 days

Marburg Virus: What You Need To Know About Disease Recently Detected In West Africa

Local stock market bows to profit-taking activities as investors lose N114bn in 5 days