Investors lost N784 billion on the stock market last week following sell-off in the shares of some highly capitalised stocks.
The selloffs kept the stock market in the negative territory despite signs of recovery in some banking securities, which hitherto drove weak performance in the market, reports Vanguard.
Investment analysts had projected a likelihood of profit-taking activities following the recent announcement regarding the suspension of Dangote Foods merger and the on-going reactions to the banking sector recapitlisation.
Result of the week’s transactions showed the Nigerian Exchange Limited (NGX) All Share Index (ASI) declined by 1.39 percent to 98,152.91 points led by losses in MTN Nigeria Communication Plc, FBN Holdings Plc and Nestle Nigeria Plc, which depreciated by 9.8 percent, 16.3 percent and 11.6 percent respectively.
This is amidst recovery in Guaranty Trust Company (GTCo) Plc, which rose by six percent, Stanbic IBTC (3.6%) and Zenith Bank Plc (1.6%).
Similarly, the market capitalization of the listed equities fell to N55.512 trillion from N56.296 trillion, representing a 1.39 percent decline.
Sectoral analysis shows that the banking sector led decliners, dropping by 3.1 percent, followed by the oil and gas sector with 1.4 percent, while the consumer goods sector recorded 1.2 percent decline.
On the other hand, the industrial goods sector advanced by 0.4 percent, while the insurance sector closed flat.
The trading activity level was stronger, with a 15.2 percent increase in the total trading volume and a 6.0 percent increase in trading value to 1.839 billion units and N34.25 billion respectively.
According to analysts at Cordros Capital, the current negative trend is likely to persist in the short term in the absence of any positive catalysts to drive a rebound.
However, they said: “We highlight that the current favourable entry points of beaten tickers may spark bouts of recovery, even as investors weigh earnings releases.”
Meanwhile, further breakdown of the week’s trading showed that the financial services sector, measured by volume, led the activity chart with 1.129 billion shares valued at N22.290 billion traded in 22,008 deals; thus contributing 61.38 percent and 65.06 percent to the total equity turnover volume and value respectively.
The conglomerates sector followed with 194.179 million shares worth N2.822 billion in 1,923 deals, while the construction/real estate sector placed third with a turnover of 130.702 million shares worth N649.957 million in 556 deals.
