NGX opens the Week Negative, ASI down 0.1%, market capitalisation appreciated by 1.80% last week

Today, the local bourse opened the week on a negative note as losses in UNILEVER, TRANSCORP, and FBNH pulled the NGX-ASI down 0.1% to 105,367.25 points. As such, YTD return declined to 2.4% (previously: 2.5%), while market capitalisation shed 0.1% to N64.3tn. Likewise, activity level waned as volume and value traded fell 65.9% and 58.1% to 505.8m units and N8. 1bn, respectively. Negative Sector Performance Performance across our coverage sectors was negatively skewed, as four indices lost, one gained while the Industrial Goods index closed flat. Leading the laggards, the Insurance and Banking indices fell 2.7% and 0.4% sequentially, driven by price decline in SUNASSURE (-9.6%), NEM, FBNH and UBA. Following, the Consumer Goods and AFR-ICT indices declined 0.2% and 1bp sequentially, following sell pressure on UNILEVER (-8.3%), NNFM, CWG (-5.1%) and CHAMS. On the flipside, the Oil & Gas index inched higher by 0.3%, riding on price appreciation in TOTAL (+2.8%) and OANDO (+2.5%). Investor sentiment, as measured by market breadth, weakened to -0.11x (from 0.10x) as 25 stocks advanced, 33 declined while 72 closed flat. Tomorrow, we anticipate the negative performance to spill over due to waninginvestor sentimentand reduced activity.
Meanwhile the NGX All-Share Index and Market Capitalisation appreciated by 1.80 per cent each, to close last week at 105,451.06 and N64.303 trillion respectively. Theses are against 103,586.33 and 63.166 trillion posted last week. Consequently, equity investors gained a total of N1.137 trillion for the week under review. Similarly, all other indices finished higher with the exception of NGX Insurance, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Value, NGX Consumer Goods, NGX Oil and Gas. Also, NGX Industrial Goods which depreciated by 6.91, 0.08, 1.11, 0.17, 0.34, 0.34 and 0.26 per cent respectively, while the NGX ASeM closed flat. A total turnover of 4.698 billion shares worth N85.043 billion in 72,562 deals was traded this week by investors on the floor of the Exchange.
This was in contrast to a total of 2.618 billion shares valued at N69.742 billion that exchanged hands last week in 47,953 deals. The Financial Services Industry measured by volume led the activity chart with 3.470 billion shares valued at N40.791 billion traded in 34,364 deals: thus contributing 73.86 and 47.97 per cent to the total equity turnover volume and value respectively. The Services industry followed with 407.032 million shares worth N2.226 billion in 4,996 deals. Third place was the ICT Industry, with a turnover of 237.680 million shares worth N3.628 billion in 5,280 deals. Trading in top three equities namely, Wema Bank Plc, FBN Holdings Plc and Universal Insurance Plc, measured by volume accounted for 1.679 billion shares worth N20.838 billion in 4,922 deals. These contributed 35.74 per cent and 24.50 per cent to the total equity turnover in volume and value respectively. Also, 51 equities appreciated in price during the week, lower than 82 equities in the previous week. Thirty-nine equities depreciated in price higher than 18 in the previous week, while 62 equities remained unchanged, higher than 52 recorded in the previous week.
Multiverse Mining and Exploration Plc led 50 other advanced equities on the gainers’ table by 53.42 per cent to close at N12.35 per share. Sunu Assurances also led the 38 other declined equities on losers’ table by 36.52 per cent to close at N7.30 per share. Looking ahead, analysts at Cowry Asset Management Ltd., predicted bullish momentum at the equity market to persist in the coming week. The analysts said this would be supported by anticipation of fourth quarter 2024 unaudited financial results and preparations for the dividend earning season. They noted that positive sentiment is likely to prevail as stocks continue to reach new historical highs, bolstered by favourable market valuations and outlooks. “Nonetheless, we advise investors to focus on fundamentally sound stocks to maximise returns amidst the ongoing rally,” the analysts said.