NGX-ASI Eases Decline by 8bps w/w Amid Sell-Offs in Blue-chip Stocks


In the just-concluded week, the local bourse snapped a sharp decline, exhibiting shades of bearishness and weakness in market activities. This reversal undid last week’s pocket of gains, despite impressive dividend payments and signals of fund inflow into the market. Consequently, the all-share index dipped by 0.08% week-on-week to 99,222.33 points as blue-chip and bellwether stocks witnessed sell-offs by investors.

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Similarly, the market capitalization of listed equities reversed last week’s gains by 0.08% over the week, falling from N56.17 trillion to N56.13 trillion. This marginal decline translated into a N43.6 billion loss wiped off from the wealth of equity investors, even as the exchange recorded 33 weekly gainers against 37 weekly decliners on the back of weak market sentiment which prompted the bears to hold firm on the benchmark index, resulting in a year-to-date return of 32.7%.

By the close of the first trading week in June, the equities market booked gains in two out of five sessions. Top gainers for the week included RTBRISCOE (+25%), OANDO (+24%), ETERNA (+22%), DEAPCAP (+20%), and ETI (+12%). Conversely, negative investor sentiment led to sell-offs in UNITYBNK (-22%), SOVRENINS (-14%), TRANSCORP (-11%), SUNUASSUR (-11%), and PRESTIGE (-11%), as investors adjusted their portfolios for sectoral rotation.

Sectoral performance was mixed, with the NGX-Insurance index leading the gainers with a 0.84% increase due to gains in CUSTODIAN, NEM, LASACO, and REGALINS. The NGX-Consumer Goods index followed, rising by 0.33% due to positive price movements in PRESCO, HONYFLOUR, INTBEW, and NIGERIAN BREWERIES. In contrast, the NGX-Banking and NGX-Oil & Gas indices saw notable week-on-week decreases of 0.62% and 0.18%, driven by losses in UNITYBNK, FIDELITYBNK, UBA, SEPLAT, OANDO, and JAPAULGOLD, respectively. Meanwhile, the NGX-Industrial Goods index closed the week flat.

Elsewhere, trading activities were downbeat on all fronts, with negative market breadth evidenced by a decline in total volume and deals activities. The total traded volume fell by 22.21% week-on-week to 1.70 billion units, while the total weekly traded value decreased by 2.58% to N30.49 billion. Additionally, the total number of trades for the week plunged by 4.06% to 37,765.

Looking ahead to the next week, a mixed trend is expected, driven by profit-taking activities, the publication of third-quarter earnings forecasts by corporates, and portfolio rebalancing. Market pullbacks are anticipated to enhance the index’s upward potential, supported by the ongoing dividend earnings season. Investors and traders are expected to also position themselves for expected macroeconomic data, such as the Consumer Price Index for May. However, investors are advised to trade in stocks of companies with sound fundamentals.

Godwin Okafor
Godwin Okafor
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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