The Nigerian equities market posted losses of 2.18% for the week on the back of 2.09% gain in the preceding week. The bearish reaction is as a result of intense profit-taking from stocks already trading at an all-time high, the CBN’s increase of the MPR to 13% and the increase in yields seen in the treasury and bond market. The performance saw approximately N634.5 billion removed from the market as investors take a back seat approach.
Recall that the Central Bank of Nigeria (CBN) voted unanimously to raise the benchmark interest rate to 13% after two years of expansionary monetary policy. This is the first time the CBN is raising the interest rate since September 2020, when the interest rate stood at 11.50%. CBN adopting a hawkish stance like the U.S. Federal Reserve is targeted at curbing the rising rate of inflation in the country, while still cautiously ensuring economic growth. Also, we are seeing increases in the rates in the treasury and bond markets which is more appealing to investors as they are less risky assets as opposed to the medium to high risks associated with investing in stocks.
As previously mentioned, the All-Share Index (ASI) lost by 2.18% from 54,085.30 points recorded as of the end of last week to close the week at 52,908.24 index points, while the market capitalization followed suit to close at N28.52 trillion. This brings the month-to-date performance of the Nigerian stock market to -0.15% and a year-to-date gain of 23.86%.
Equity market performance
A total turnover of 28.736 billion shares worth N209.060 billion in 23,688 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.840 billion shares valued at N27.286 billion that exchanged hands last week in 27,273 deals.
Just like in the previous week, the Financial Services Industry (measured by volume) led the activity chart with 28.048 billion shares valued at N198.017 billion traded in 10,416 deals; thus contributing 97.61% and 94.72% to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 434.845 million shares worth N1.339 billion in 1,225 deals. The third place was The Consumer Goods Industry, with a turnover of 74.111 million shares worth N2.853 billion in 3,835 deals.
Trading in the top three equities namely Union Bank Of Nigeria Plc, Transnational Corporation Plc and FBN Holdings Plc (measured by volume) accounted for 27.841 million shares worth N193.488 billion in 1,872 deals, contributing 96.89% and 92.55% to the total equity turnover volume and value respectively.
Despite the bearish performance by the market, which is majorly attributable to losses seen in CONOIL, PRESCO and OKOMUOIL, we saw 3 indexes post gains for the week. They are the NGX Insurance, NGX AFR Div Yield and NGX Growth indexes. NGX ASeM and NGX Sovereign Bond closed flat.
TOP GAINERS
- NAHCO up +22.72% to close at N7.94
- JAIZBANK up +15.38% to close at N0.90
- ETERNA up +13.74% to close at N7.70
- PZ up +10.04% to close at N12.60
- NEM up +9.95% to close at N4.20
TOP LOSERS
- CONOIL down – 15.04% to close at N29.10
- WEMABANK down –12.33% to close at N3.20
- PRESCO down –10.00% to close at N162.00
- OKOMUOIL down –10.00% to close at N193.50
- NCR down –9.77% to close at N3.60
Summary
36 equities appreciated in price during the week, higher than 23 equities in the previous week. 45 equities depreciated in price, lower than 54 equities in the previous week, while 75 equities remained unchanged lower than 79 equities recorded in the previous week.
