This week, sell-side pressure and volatility surfaced on the local bourse, with the bears tightening their grip following the news of the contagion from the failure of some US banks.
To this end, the market pulled back to trade below the 55,000 psychological level on sell-offs in some of the highly priced stocks and some blue-chip companies even as equity investors continued to digest the recently published inflation data ahead of the forthcoming monetary policy meeting next week.
The market’s performance was lackluster this week as the NGX-ASI shed 1.54% week on week to 54,935.20 points due to profit-taking activities in some blue-chip and high-priced stocks.
In the same manner, the market capitalization nosedived by 1.54% week on week to N29.93 trillion as the sum of N468.12 billion was wiped from investors’ pockets, while the year-to-date return inched further to 7.19% from 8.87% last week.
Across the sectors this week, performance was
largely bearish across the indices under our
Thus, there were declines in the Banking (-4.59%), Insurance (-2.45%), and
Industrial Goods (-0.27%) sectors from the prior week.
On the contrary, the Consumer Goods index was the lone gainer by 1.39% this week as we saw positive price movement through the sessions while the oil and ga s index remained flat from the last week’s close.
At the close of the week, the level of market trading activities was downbeat as the total number of deals decreased by 0.6% week on week to 18,543 even as stockbrokers recorded a 16.57% week on week declin e in traded volumes for the week to 853.75 million units valued at N1.56 billion, indicating a decline of 92.26% week on week.
Meanwhile, the top -gaining securities for the week were UPL (+9%), FTNCOCOA (+8%), and BUAFOODS (+4%), while the week’s losers we re UCAP (-17%), LINKASSURE (-11%), and ETI (-10%).
Next week, we expect to see a mixed trend of market activities as players d igest recent macroeconomic data and rates from the last auction ahead of the CBN MPC meeting with more earnings scorecards in the midst of price markdowns for dividends from some companies.
Also, it is expected that income investors will target dividend -paying and defensive stocks to defend their portfolios
ahead of the governorship and state assembly elections.
Meanwhile, we advise investors to trade companies with sound fundamentals and, as such, should take advantage of price corrections in line with domestic and global trends.