NGX weekly: Investors lose N21bn as transactions value sheds 15%

The value of transactions on the Nigerian Exchange Ltd. (NGX) dropped by 15 per cent during the week, resulting in a loss of N21 billion for investors compared to the previous week.

Specifically, a total turnover of 2.259 billion shares worth N31.166 billion in 42,851 deals was traded by investors during the week.

This contrasts with the previous week’s turnover of 2.651 billion shares valued at N49.976 billion in 41,610 deals.

The financial services industry led the activity chart by volume, with 1.801 billion shares valued at N22.03 billion traded in 23,112 deals.

Thus contributing 79.75 and 70.69 percent to the total equity turnover volume and value, respectively.

The oil and gas industry followed with 121.001 million shares worth N1.771 billion in 3,124 deals.

In third place was the conglomerate industry, with a turnover of 90.713 million shares worth N1.081 billion in 2,277 deals.

Trading in the top three equities, namely: Fidelity Bank Plc, Universal Insurance Plc and Guaranty Trust Holding Company Plc, measured by volume, accounted for 909.821 million shares worth N12.057 billion in 4,798 deals.

Contributing 40.28 and 38.69 per cent to the total equity turnover volume and value, respectively.

Consequently, the NGX All-Share Index and market capitalisation depreciated by 0.04 per cent to close the week at 100,022.03 and N56.581 trillion, respectively, compared to 100,057.49 and N56.602 trillion recorded in the previous week.

This led to a loss of N21 billion week-on-week for investors.

All other indices finished higher except for NGX 30, NGX Premium, NGX MERI Value, NGX Consumer Goods, NGX Lotus II, and NGX Pension Broad, which depreciated by 0.27, 0.52, 0.01, 0.69, 0.56, and 0.07 percent, respectively.

Meanwhile, the NGX ASeM and NGX Sovereign Bond indices closed flat.

Also, thirty-seven equities appreciated in price during the week, lower than 48 equities in the previous week.

Forty-five equities depreciated in price, higher than 34 in the previous week, while 72 equities remained unchanged, the same as 72 recorded in the previous week.

Veritas Kapital Assurance Plc led the gainers’ chart by 25 percent to close at N1.15 per share, while UPDC Real Estate Investment Trust led the losers’ chart by 17.43 percent to close at N4.50 per share for the week.

Meanwhile, looking ahead to the coming week, analysts at Cowry Asset Management Ltd. predicted that the bulls would lead the charge as the half-year earnings reporting season approaches.

The analysts stated that position-taking and sector rotation were anticipated to persist ahead of the new earnings season.

According to them, this will bring changes in liquidity, momentum, volume, and reactions to both positive earnings and disappointing numbers, driving volatility that creates wealth for market players.

“As the changing market structure and fundamentals persist, investors are advised to position themselves in stocks with sound fundamentals,” the analysts said.