Local Stock Market Loses Ground, Shedding N761.4bn in Weekly Sell-Offs

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The Nigerian stock market surrendered its gains from the previous week as bearish sentiment returned, resulting in fluctuations in stock prices and prompting investors, particularly in consumer goods and insurance sectors, to engage in sell-offs. Consequently, the All-Share Index (ASI) experienced a notable decline of 1.36% week-on-week, closing at 98,233.76 index points, fueled by downbeat market sentiments as investors opted to offload shares in a sectoral rotation exercise.

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Furthermore, the market capitalisation of listed equities saw a downturn in three out of five trading sessions last week, decreasing by 1.35% week-on-week to N55.56 trillion. Despite being in the dividend earnings season, equity investors witnessed their wealth decrease by a total of N761.4 billion, although the year-to-date return of the market improved to 31.4%.

Trading activity during the week displayed a positive trend, albeit with a slightly negative market breadth, with the number of losers outnumbering gainers in a ratio of 37:24. Consequently, the weekly traded volume saw a 12.7% increase week-on-week to 2.19 billion units, transacted in 45,277 deals, marking a 26.45% advancement from the previous week. Similarly, the traded value for the week surged by 55.21% week-on-week to N50.67 billion.

The sectoral performance for the week was predominantly skewed towards the negative territory, except for the NGX-Industrial index, which recorded marginal gains of 0.07% due to positive price movements in CAVERTON, CAP, and WAPCO. Conversely, the NGX-Consumer Goods, NGX-Oil & Gas, NGX-Banking, and NGX-Insurance indexes witnessed declines of 1.18%, 0.33%, 0.07%, and 1.01% week-on-week, driven by sell sentiment in stocks such as PZ, INTBREW, AIRTELAFRI, STERLINGNG, FBNH, LINKASSURE, MBENEFIT, and ETERNA.

Among the best-performing stocks for the week, TANTALIZER led with a 28% increase, followed by FTNCOCOA (20%), PRESCO (15%), MAYBAKER (15%), and TIP (15%), buoyed by positive interest from investors. Conversely, the worst performers included PZ (-27%), MCNICHOLS (-20%), INTBREW (-15%), AIRTELAFRI (-10%), and ETERNA (-10%), as their share prices faced downward pressure from negative sentiments.

Looking ahead to the coming week, mixed sentiment is anticipated in the market as bulls and bears vie for dominance, while market players remain attuned to corporate actions in anticipation of dividend income. Despite this, pockets of gains are expected as fiscal and monetary policies strive to steer the nation’s economy towards recovery, notwithstanding the forthcoming April 2024 CPI report and Q1 2024 Nigeria’s GDP report. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.


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Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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