Investors Lose N534bn As Banking, Telecom Sell-offs Drag Equities Lower

The Nigerian equities market closed the week on a bearish note with a decline of N534 billion, as renewed sell-offs in selected stocks weighed on overall market performance.

Accordingly, the benchmark NGX All-Share Index (ASI) declined by 0.33 per cent week-on-week (WoW) to close at 247,539.73 points, while market capitalisation decreased by N534 billion to N160.73 trillion. Consequently, the market’s year-to-date (YTD) return moderated to 59.07 per cent.

The week’s performance was driven mainly by sell pressure in Zenith bank, MTN Nigeria Communications (MTNN), First Holdco and Guaranty Trust Holding Company (GTCO).

Despite the decline in the benchmark index, market breadth remained positive, with 49 gainers against 29 decliners, indicating that advancing stocks outnumbered declining stocks.

Livestock Feeds led the gainers table by 44.49 per cent to close at N19.00, per share. e-Tranzact International followed with a gain of 42.98 per cent to close at N17.30, while Multi-Trex Integrated Foods went up by 42.86 per cent to close to 60 kobo, per share.

On the other side, Nigerian Enamelware led the decliners table by 9.95 per cent to close at N36.65, per share. NASCON Allied Industries followed with a loss of 9.48 per cent to close at N171.00, while Trans-Nationwide Express declined by 9.09 per cent to close at N2.70, per share.

Overall, a total turnover of 1.659 billion shares worth N98.088 billion in 184,632 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.715 billion shares valued at N158.280 billion that exchanged hands prior week in 209,986 deals.

Looking ahead, Cordros Securities Limited said, “we expect market sentiment to improve, supported by bargain hunting following recent price declines, anticipation of Q3 earnings releases and positioning ahead of upcoming dividend qualification dates, which could drive selective buying interest.”