Bearish sentiments dominated the Nigerian Exchange Limited (NGX) stock market last week, as the market posted losses in four of five trading sessions as a result of investor profit-taking activity.
Notably, profit taking in Total, Guaranty Trust Bank Plc (GTCO), FBN Holdings Plc and Nigerian Breweries Plc resulted in the weekly loss of 18 billion naira when the market cap closed at 22.554 billion naira last week against 22,572 billion nair when it opened for trading. .
As a result, the NGX All-Share Index fell 0.12% to 43,199.27 basis points from 43,253.01 basis points, the monthly return to date (MTD) and year to date (YTD) being 2.8% and 7.3%, respectively.
Total Lenergies Marketing Nigeria Plc’s share price fell 9.9% to N 216.80, while GTCO depreciated 7.5% to N 25.40 last week. In addition, FBN Holdings and NB fell 3.7% and 2.8% to N11.55 and N51 respectively
Activity levels were mixed, with trading volumes declining 4.8% w / w while value increased 33.4% week-on-week (w / w). Sector performance was generally bearish, with all sectors closing in the red.
Oil and gas (-3.6%) lead the list of losers, followed by banks (-1.6%), consumer goods (-1.4%), insurance (-0.5 %) and industrial goods (-0.1%) indices.
The exchange, in its weekly report, said a total turnover of 1.392 billion shares worth 27.886 billion naira in 19,990 transactions was traded last week by investors, against a total of 1.471 billion shares worth 20.941 billion naira that were traded in the previous week in 20,410 transactions.
Trading in the top three stocks, namely FBN Holdings Plc, GTCO and Sterling Bank Plc (measured by volume), represented 638.319 million shares worth 8.542 billion naira in 4,116 deals, contributing to 45.85 % and 30.63% of the total turnover of shares and value respectively.
The exchange added that a total of 65,606 units valued at 68.507 million naira were traded last week in nine deals, compared to a total of 56,655 units valued at 60.795 million naira traded the previous week in 26 deals.
Ahead of stock trading this week, analysts at Cordros Research said: stocks with attractive dividend yields ahead of fiscal 2021 dividend declarations and intermittent profit-taking activity.
“Nonetheless, we advise investors to only take positions in fundamentally justified stocks, as the unimpressive macro story remains a significant headwind for corporate earnings.”