Stock market cap sheds N48bn in one week
Nigerian Exchange Group NGX
Nike Popoola
Investors lost N48bn at the end of trading on the floor of the Nigerian Exchange Limited this week.
The market opened for four trading days this week as the Federal Government of Nigeria declared Friday March 29, 2024 and Monday April 1, 2024 as Public Holidays to commemorate Easter celebration.
After the two-day Monetary Policy Committee meeting, the Central Bank of Nigeria had announced the raise in the Monetary Policy Rate by 200 basis points to 24.75 per cent from 22.75 per cent.
Figures obtained by Daily Economy from NGX showed that the NGX All-Share Index and Market Capitalization depreciated by 0.08 per cent to close the week at 104,562.06 and N59.121tn respectively.
All other indices finished higher with the exception of NGX Main Board, NGX 30, NGX Consumer Goods and NGX Growth which depreciated by 0.28 per cent, 0.16 per cent, 0.97 per cent and 0.14 per cent, respectively while the NGX Oil and Gas and NGX Sovereign Bond indices closed flat.
According to the NGX, 40 equities appreciated in price during the week lower than 50 equities in the previous week.
Thirty-one equities depreciated in price lower than 32 in the previous week, while 83 equities remained unchanged, higher than 72 recorded in the previous week.
The NGX report showed a total turnover of 1.804billion shares worth N52.040bn in 38,550 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.735 billion shares valued at N48.755bn that exchanged hands last week in 45,237 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.329billion shares valued at N32.924bn traded in 20,897 deals; thus contributing 73.65% and 63.27% to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 106.728 million shares worth N1.467bn in 2,368 deals. The third place was the Consumer Goods Industry, with a turnover of 87.708 million shares worth N4.220bn in 4,731 deals.
Trading in the top three equities namely Guaranty Trust Holding Company Plc, Zenith Bank Plc and Access Holdings Plc (measured by volume) accounted for 589.939 million shares worth N23.276bn in 8,166 deals, contributing 32.70% and 44.73% to the total equity turnover volume and value respectively.
Researchers at Cordros Securities in the weekly report noted that the local stock market witnessed another subdued performance despite closing marginally higher on two of the four trading sessions this week.
The report stated, “Given the outcome of the MPC meeting, we believe the hawkish stance of the MPC will continue to intensify risk-off sentiments in the local bourse, particularly among domestic investors.
“However,we believe earnings releases from the banks and accompanying dividend declarations could trigger another wave of positive sentiments, supporting buying activities on the bourse.”
