Investors’ profit-taking down equities market by N25bn in 5 days
By Kayode Tokede
Investments on the Nigerian Exchange Limited (NGX) equities market last week declined by N25 billion as investors took profit following the previous week gains.
Last week, the performance of the equities market was mixed as the benchmark index closed in the green on two of the five trading sessions. Hence, the NGX All-Share Index (ASI) shed 0.12 percent week-on-week (W-o-W) to close at 37,947.18 points. Similarly, market capitalisation decreased by N25 billion in value to close at N19.771 trillion.
Performance across sectors was mixed. The NSE Insurance, NSE Consumer Goods and the NSE Industrial indices shed by 1.07 percent, 0.85 percent and 0.30 per cent to close at 201.51 points, 593.93 points and 1,923.73 points respectively. On the positive side, the NSE Banking and the NSE Oil & Gas indices rose by 0.09 per cent and 1.01 percent to 383.30 points and 337.61 points respectively.
Market breadth for the week was negative as 29 equities appreciated in price, 32 equities depreciated in price, while 95 equities remained unchanged. FTN Cocoa Processors led the gainers table by 20.59 percent to close at 41 kobo, per share. NCR Nigeria followed with a gain of 20.48 percent to close at N3.00, while Capital Hotel went up by 10.00 percent to close to N2.64, per share.
On the other side, Ikeja Hotel led the decliners table by 18.83 percent to close at N1.25, per share. Consolidated Hallmark Insurance followed with a loss of 15.71 percent to close at 59 kobo and Unity Bank declined by 8.47 percent to close at 54 kobo, per share.
Overall, a total turnover of 1.008 billion shares worth N10.923 billion in 17,297 deals were traded last week by investors on the floor of the Exchange, in contrast to a total of 1.348 billion shares valued at N12.140 billion that exchanged hands previous week in 21,581 deals.
The Financial Services Industry (measured by volume) led the activity chart with 732.418 million shares valued at N7.213 billion traded in 9,131 deals; contributing 72.62 percent and 66.04 percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 52.931 million shares worth N170.271 million in 656 deals, while ICT Industry traded a turnover of 52.716 million shares worth N1.806 billion in 701 deals.
Trading in the top three equities; Guaranty Trust Holding Company, United Bank for Africa (UBA) and Zenith Bank (measured by volume) accounted for 261.741 million shares worth N5.813 billion in 3,498 deals, contributing 25.95 percent and 53.22 per cent to the total equity turnover volume and value respectively.
On Exchange Traded Products (ETPs) platform, a total of 7,403 units valued at N486,759.25 were traded last week in 17 deals compared with a total of 34,123 units valued at N784,264.64 transacted previous week in 13 deals, while on the Bond market, a total of 29,583 units valued at N29.805 million were traded last week in 12 deals compared with a total of 147,590 units valued at N173.172 million transacted prior week in 15 deals.
In the new week, analysts at Cowry Assets Management Limited expected the equities market to trade positive as investors position ahead in stocks which are expected to pay interim dividends.
Afrinvest Limited stated that “This week, we expect increased volatility in market performance as more companies release their first half, 2021 earnings results.”
While, analysts at Cordros Capital Limited believe the outcome of the bond auction scheduled to hold this week will shape market sentiments.
They stated that “As a result, we expect investors to trade cautiously while taking positions in stocks with attractive dividend yields ahead of H1, 2021 dividend declarations, which intermittent profit-taking activities would match. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”
