The Nigerian Exchange Limited recorded a dip in the stock market, causing mixed sentiments that resulted in a loss of N136bn for investors at the close of trading last week. The All-Share Index also fell by 0.48%, which was approximately 250.69 base points, and ended at 52,214.62 on Friday.
Unfortunately, several other indices also depreciated, including NGX Main Board, NGX 30, NGX Banking, NGX AFR Bank Value, NGX MERI Value, NGX Industrial Goods, and NGX Sovereign Bond, depreciating by 0.85%, 0.12%, 0.99%, 1.45%, 1.11%, 3.36%, and 4.83%, respectively. In contrast, the NGX ASeM index closed flat, while all other indices finished higher.
Despite recording an increase in year-to-date returns to 1.88% from Thursday’s 1.78%, investors’ losses adversely affected the Nigerian stock market in the last trading week. Investors traded a total turnover of 3.602 billion shares valued at N36.451 billion in 27,801 deals. In contrast, the previous week recorded a total of 2.973 billion shares valued at N22.828 billion that exchanged hands in 23,765 deals.
During the trading week, the Financial Services Industry led the activity chart with 3.150 billion shares valued at N27.484 billion traded in 14,987 deals, accounting for 87.47% and 75.40% to the total equity turnover volume and value, respectively. Following closely on the activity chart was the Conglomerates Industry, recording 99.394 million shares worth N219.455 million in 901 deals.
In the top three equities, Fidelity Bank Plc, Access Holdings Plc, and FBN Holdings Plc measured/made by volume accounted for 2.167 billion shares valued at N18.650 billion in 5,083 deals, contributing to 60.17% and 51.16% to the total equity turnover volume and value, respectively.
In the last trading week, 48 equities appreciated lower than the previous week’s 51, 30 equities depreciated in price higher than the previous week’s 26, while 78 equities remained unchanged, lower than the 79 recorded in the previous week.
Computer Warehouse Group topped the gainers’ table, with shares appreciating by 56.82% to close at N2.07. Ardova Plc gained 37.50% to close at N26.40, while Transnational Corporation Plc and Multiverse Mining and Exploration Plc gained 33.51% and 32.90%, respectively. Sovereign Trust Insurance Plc also recorded 27.27% gain to close at N0.42.
On the other hand, C&I Leasing dipped by 19.60%, Access Holdings Plc lost 12%, Royal Exchange Plc lost 11.48%, Sunu Assurances Nigeria Plc suffered a 9.6% loss, and Bua Cement lost 8.02%.
Attributing the mixed sentiments in the market, analysts at SCM Capital projected that the situation might persist, noting that bargain hunting would take positions in fundamentally sound stocks with fantastic earnings in the first quarter.
In his presentation at the May edition of the Lagos Business School Breakfast meeting, the Managing Director/Chief Executive Officer of Financial Derivatives Company Ltd, Bismarck Rewane, warned that the impact of the cashless policy of the Central Bank of Nigeria would remain a threat to consumers’ purchasing power and likely weigh on the second-quarter performance of corporates. Furthermore, he expressed that it’ll be offset by improved digital services and increased availability of cash.
