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The Nigerian equities market closed bearish last week as the All-Share Index (ASI) declined by 0.68 per cent in the week ended 11th November 2022.
According to the report from the Nigerian Exchange Limited (NGX), the benchmark index, ASI, depreciated by 0.68 per cent from 44,269.18 points recorded as of the end of last week to close the week at 43,968.75 index points.
Equally, the grip of the bears held the market capitalisation by 0.68 per cent Week-on-Week (WoW) to N23.95 trillion which resulted in the loss of N163.64 billion which was wiped out from investors’ pockets.
This brings the month-to-date performance of the Nigerian stock market to 0.30 per cent and a year-to-date gain of 2.93 per cent.
Last week, the dip in the market was largely driven by sell-offs in Guinness Nigeria, Flour Mills of Nigeria, Nigerian Breweries, MTN Nigeria and Dangote Cement as the respective share prices of the large caps depreciated by 10.0 per cent, 9.9 per cent, 6.3 per cent, 2.0 per cent and 0.8 per cent.
Elsewhere, the performances across sectors were broadly negative, as the Insurance, Consumer Goods, Oil and Gas, and Industrial Goods, recorded depreciation in value, while only the Banking index appreciated during the week under review.
However, the level of trading activities in the week varied as the total traded volume dipped by 21.9 per cent WoW to 1.10 billion units while the total weekly traded value inched northward by 7.30 per cent WoW to N11.71 billion and then the total deals traded for the week took a free fall by 17.07 per cent week on week to 15,697 deals from 18,928 deals in the previous week.
Much like the previous week, the Financial Services Industry led the activity chart in terms of volume of shares traded with 859.019 million shares valued at N6.691 billion traded in 8,157 deals; thereby contributing 78 per cent and 57.12 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 96.989 million shares worth N109.622 million in 425 deals, while the Oil & Gas stood in third place with a turnover of 40.897 million shares worth N367.117 million in 1,065 deals.
Trading in the top three equities by volume namely Access Holdings Plc, Sterling Bank Plc, and Transnational Corporation Plc accounted for 577.512 million shares worth N2.761 billion in 1,132 deals, contributing 52.44 per cent and 23.57 per cent to the total equity turnover volume and value respectively.
Similarly, 12 indexes finished lower, while 4 indexes appreciated except NGX ASeM Index and NGX Growth Index, and NGX Sovereign bond which remained unchanged.
27 equities appreciated during the week, higher than 20 equities in the previous week. 36 equities depreciated lower than 43 last week, while 94 equities remained unchanged, the same as 94 equities recorded in the previous week.
Looking ahead into the new week, analysts at Cowry Assets expect the market to trade in the bullish region despite the absence of a major trigger that is likely to drive activities in the market for investors seeking alpha. However, they advised investors to trade on companies’ stocks with sound fundamentals and a positive outlook amid the macro-dynamics which remain a headwind.
At Cordros Securities, analysts expect bearish sentiments to remain predominant in the week in the absence of any positive triggers to turn the tide for Nigerian equities.
“Nonetheless, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings,” they advised.
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