The domestic equities market experienced a negative performance last week. As a result, the Nigerian Exchange Limited (NGX) All-Share Index shed 0.42 per cent week-on-week (W-o-W) to close at 66,915.41 basis points.
Similarly, market capitalisation decreased by N156 billion to close the week at N36.764 trillion.
Sectoral performance for last week was predominantly negative, driven by profit-taking activities and selling sentiment. The NGX Banking index was the exception, posting a 3.52 per cent weekly gain.
On the other side, the NGX Insurance, Consumer Goods, Industrial Goods, and Oil & Gas indices all recorded a weekly loss of 0.96 per cent, 0.46 per cent, 0.07 per cent, and 0.02 per cent, respectively.
The market breadth for the week was negative as 28 equities appreciated in price, 46 equities depreciated in price, while 83 equities remained unchanged. Thomas Wyatt Nigeria led the weekly gainers table by 29.64 per cent to close at N3.63, per share. DAAR Communications followed with a gain of 9.52 per cent to close at 23 kobo, while Julius Berger went up by 9.09 per cent to close to N36.00, per share.
On the other side, Sovereign Trust Insurance led the weekly decliners table by 17.50 per cent to close at 33 kobo, per share. Cadbury Nigeria followed with a loss of 16.00 per cent to close at N12.60, while Stanbic IBTC Holdings declined by 13.06 per cent to close at N69.55, per share.
Overall, a total turnover of 1.496 billion shares worth N24.284 billion in 29,298 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.470 billion shares valued at N24.431 billion that exchanged hands previous week in 29,683 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.047 billion shares valued at N12.709 billion traded in 13,667 deals; contributing 69.99 per cent and 52.34 per cent to the total equity turnover volume and value respectively. The ICT Industry followed with 94.997 million shares worth N1.445 billion in 1,982 deals, while the Conglomerates Industry traded a turnover of 80.655 million shares worth N526.409 million in 1,459 deals.
Trading in the top three equities; United Bank for Africa (UBA), Fidelity Bank and Access Holdings (measured by volume) accounted for 447.125 million shares worth N6.488 billion in 4,913 deals, contributing 29.88 per cent and 26.72 per cent to the total equity turnover volume and value respectively.
Looking ahead, Cowry Assets Management Limited said, “As investors continue to book profits and market players await a significant catalyst to boost activity, mixed sentiments are expected to persist.
“The market may see fluctuations as early filers publish their Q3 earnings reports, with a combination of bargain hunting and portfolio repositioning influencing market dynamics. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.”
Analysts at Cordros Securities Limited stated that, “We expect the direction of market performance to be shaped by the ongoing Q3 earnings season as investors cherry-pick fundamentally sound stocks.
“Overall, we reiterate the need for taking positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”