For the fourth week running, the Nigerian Exchange Limited stock market has been in decline as a result of significant sell-offs in Airtel Africa Plc.
According to ThisDay, the market capitalization fell by N675 billion to N28.869 trillion as a result of profit-taking, while the NGX All-Share Index fell by 2.28 percent week-over-week to settle at 52,994.13 basis points.
With the exception of the NGX Insurance index, which gained 2.09 percent week over week due to purchase demand, performance across sectors last week was mostly on a bear trend across the indices under our purview.
The NGX Banks index, NGX Consumer Goods index, and NGX Oil & Gas index all traded downward to conclude the week by 1.05%, 0.62%, and 0.11% from the previous week. In contrast, the Industrial index led the losses with a loss of 3.65 percent week over week.
The market breadth for the week was negative as 16 stocks had price increases, 37 stocks saw price decreases, and 103 stocks saw no change in price.
Nigerian Aviation Handling Company, which closed at N9.80 per share, led the gainer’s table by 20.99%. Following closely behind, AXA Mansard Insurance increased by 15.79% to close at N2.20, while CWG increased by 14.94% to close at N1.00 per share.
Eterna, on the other hand, finished at N5.50 per share and headed the decliner’s table by 19.12%. After Multiverse Mining and Exploration, which lost 18.83% to close at N2.63, Associated Bus Company lost 16.22% to close at 31 kobo per share.
Investors transacted a total of 1.054 billion shares worth N10.050 billion in 16,155 deals last week on the Exchange’s trading floor, down from 2.071 billion shares worth N17.562 billion in 17,917 deals the week before.
With 630.378 million shares worth N5.438 billion exchanged in 7,705 deals, the Financial Services Sector dominated the activity chart in terms of volume, accounting for 59.83 percent and 54.11 percent, respectively, of the overall stock turnover volume and value.
The Oil and Gas Industry had a turnover of 70.921 million shares worth N1.345 billion in 1,452 trades, while the Conglomerates Industry came in second with 248.074 million shares worth N394.370 million in 812 deals.
Based on this week’s market activity, analysts predicted that the stock market will continue its downward trend this week due to persistent sell pressure.
Last week, the market was open for four trading days as the federal government proclaimed Good Friday, April 7, 2022, and Easter Monday, April 10, 2022, as public holidays to honor the 2023 Easter celebrations.
The local stock market lost money once more last week as a result of a mixed session of buy-sell inclinations across key market sectors in response to recent economic data releases and dividend announcements by corporations.
Investors are starting to reposition ahead of the first quarter results season based on the present price levels that have been seen as an appealing point of entry in the aftermath of the market’s escalating sell-off sentiments.
Afrinvest Limited analysts anticipated that the dismal investor sentiment will support the bearish performance this week.
Cowry Assets Management predicted that the present pattern of mixed sentiments will continue in the coming week as the market looked for a significant catalyst that may spark positive emotions.
“Investors should exercise caution, though, as political unrest and insecurity continue to dominate Nigeria’s macroeconomic news. Additionally, we still counsel investors to trade on the stocks of firms with strong fundamentals and a promising future,” said Afrinvest.
According to Cordros Securities Ltd, “the absence of any large inflows into the system this week could maintain money market rates elevated over the short run given the thin maturity profile over the coming weeks.
“Nonetheless, we observe a sizeable maturity (about N759.00 billion) at the month’s end, which will be accompanied by coupon payments that may cause rates to descend.”
