In the intriguing world of Nigerian equities, each week brings a fresh set of opportunities to Investors.
In this weekly roundup, Nairametrics highlights the key activities that impacted the performance of Nigerian stocks over the past week, providing insightful analysis and highlighting noteworthy trends.
From market indices movements to sectoral performances, here’s a comprehensive overview of the week that was in Nigerian equities.
Market Overview
The Nigerian equities market witnessed a mix of volatility and stability during the week of (11th to 15th September 2023).
The week began with huge selloffs as equities reacted as FTSE Russell, the global index provider, downgraded the Nigerian Stock Exchange from “Frontline” to “Unclassified Market.”
The reclassification, which is set to take effect on September 18, 2023, prompted immediate selloffs that drove the All-Share Index down.
Equities recovered a bit during the week, but the local bourse ended
the week negative.
Overall, the NGX All-Share Index and Market Capitalization depreciated by 1.10% to close the week at 67,395.74 and N36.886 trillion respectively.
Sectoral Performance
Banking Sector: The banking sector performed poorly throughout the week as the index lost –3.24%. The index’s poor performance was largely due to the FTSE downgrade as banking stocks were the worst hit from the plunge.
Zenith Bank led the FUGAZ group to a negative outlook during the week, as the bank shed -10% of its value, which impacted on the overall performance of the sector.
Oil & Gas Sector: The oil and gas sector experienced losses (-2.02%) despite the continuous rise in the price of crude oil as Brent crude hit $94 per barrel in the international market.
Consumer Goods Sector: Investors in the consumer goods sector reacted negatively (-1.84%) during the week.
Winners and Losers:
- Winners: The top 5 best-performing stocks for the week include OANDO (42.86%), CHELLARAMS (32.76%), CWG (29.76%), CORNERSTONE INSURANCE (12.90%), and NNFM (12.03%)
- Losers: The top 5 losers for the week include ABC TRANSPORT (-33.63%), OMATEK (-31.03%), ETRANZACT (-26.50%), GUINEA INSURANCE (-19.44%) and TANTALIZERS (-17.39%)
AGM Watch
During the week in review, several companies disclosed announcements for their respective upcoming Annual General Meetings.
- On Wednesday 13th, CORONATION INSURANCE Plc announced that their 65th Annual General Meeting of members of the company will be held virtually on October 5, 2023, at 10:00 a.m.
- Some other companies announced their AGMs such as RED STAR EXPRESS, UNIVERSAL INSURANCE, and NIGERIAN ENAMELWARE.
Insider Trading
There were a few notable insider trading activities that took place during the week.
- Mohammed Garuba, Non-Executive Director of Nigerian Exchange Group Plc acquired 10,000,000 units of shares in the company worth N225 million.
Market Outlook
Looking ahead, it would be interesting to see how the Nigerian equities market reacts to the nomination of a new CBN Governor.
President Bola Tinubu had on Friday nominated Dr. Olayemi Michael Cardoso to assume the role of Governor for the Central Bank of Nigeria (CBN) subject to confirmation from The Senate.
The market had responded positively following the suspension of previous CBN Governor, Godwin Emefiele. Nairametrics would be on the lookout as to how equities react to the nomination of Michael Cardoso as his replacement.
Also, the downgrade reclassification by FTSE Russel takes effect on Monday, the 18th.
We would also be on the lookout as to how equities react to it.