Paragraph 1: Overview of the Nigerian Exchange’s Bearish Week
The Nigerian Exchange experienced a bearish week, culminating in a N197 billion loss in market capitalization. This decline was primarily attributed to weakened investor sentiment and profit-taking across major counters. The All-Share Index (ASI) dipped by 0.62%, settling at 109,028.62 points, while the overall market capitalization contracted by 0.29% to N68.752 trillion, down from N68.949 trillion the previous week. Despite a surge in trading activity across key sectors, the negative trend persisted, raising concerns about market stability.
Paragraph 2: Trading Volume and Sectoral Performance
Trading activity on the Exchange witnessed a substantial increase during the week. A total of 3.932 billion shares, valued at N74.813 billion, were traded in 105,220 deals. This represented a marked uptick compared to the 2.606 billion shares worth N63.785 billion traded in 77,593 deals the previous week. The financial services sector continued its dominance, accounting for 2.405 billion shares worth N32.271 billion, representing 61.16% of the total equity turnover volume and 43.14% of the total value. The services and consumer goods sectors also saw significant activity, with 442.995 million shares worth N4.201 billion and 283.157 million shares worth N12.678 billion traded, respectively.
Paragraph 3: Dominant Equities and Fixed-Income Trading
Three equities, Royal Exchange Plc, Fidelity Bank Plc, and Tantalizer Plc, commanded a significant portion of the trading activity, accounting for 1.610 billion shares worth N8.897 billion. This represented 40.95% of the total volume and 11.89% of the total value of equity turnover, indicating concentrated trading in these specific stocks. Meanwhile, trading in the fixed-income segment saw a decrease in volume but an increase in value. A total of 109,953 units valued at N52.587 million were traded, compared to 138,668 units worth N26.703 million the previous week.
Paragraph 4: Exchange Traded Products (ETPs) and Index Performance
The Exchange Traded Products (ETPs) segment experienced a significant decline in trading activity. Only 21,285 units valued at N21.418 million were traded, a substantial drop from the 121,749 units valued at N118.695 million traded the week prior. Despite the overall bearish trend in the market, some indices managed to register gains. The Insurance Index, AFR Dividend Yield, Consumer Goods Index, and Industrial Goods Index all saw positive movement, rising by 0.73%, 0.11%, 2.18%, and 0.72%, respectively. However, other indices closed in negative territory, while the ASeM Index remained flat.
Paragraph 5: Market Breadth and Top Gainers/Losers
Market breadth, which indicates the overall direction of the market, revealed a mixed picture. A total of 52 equities appreciated in price, down from 61 the previous week, while 41 equities declined, compared to 31 losers in the preceding week. 55 equities remained unchanged. Among the top gainers were Cutix Plc, Custodian Investment Plc, Red Star Express Plc, John Holt Plc, and Eunisell Interlinked Plc, showcasing significant percentage increases in their share prices. Conversely, Neimeth International Pharmaceuticals Plc, Associated Bus Company Plc, Transcorp Hotels Plc, NPF Microfinance Bank Plc, and FTN Cocoa Processors Plc led the losers’ chart, experiencing notable declines in their share values.
Paragraph 6: New Listings and Previous Week’s Performance
The Nigerian Exchange also witnessed two new listings during the week. Chapel Hill Denham Nigeria Infrastructure Debt Fund listed additional units stemming from its scrip dividend distribution, increasing its total units. United Bank for Africa Plc also listed a significant number of ordinary shares following a rights issue, substantially boosting its total issued shares. It’s worth noting that the preceding week had actually seen a positive market performance, with investors gaining N614 billion and the ASI rising by 0.90%. This contrast highlights the volatility and fluctuating nature of the Nigerian equities market.
