Equity market suffers N1.2trn loss in one week

It was a massive loss for investors last week as the Nigerian equity market shredded N1.2 trillion in all the five trading days of the week. The market capitalisation decreased from N60.26 trillion to N59.03 trillion. The massive loss was a reversal of the penultimate week’s gain of over N800billion on the floor of the […]

It was a massive loss for investors last week as the Nigerian equity market shredded N1.2 trillion in all the five trading days of the week.

The market capitalisation decreased from N60.26 trillion to N59.03 trillion.

The massive loss was a reversal of the penultimate week’s gain of over N800billion on the floor of the Nigerian Exchange Group (NGX).

Monday started off with a N414bn loss; the market closed on Tuesday with a loss of N394.37bn, and shredded N21.11 billion at the end of the trading session on Wednesday.

On Thursday, investors lost N225.41 billion at the end of the trading session, just as Friday completed the long week downward trend with a N132 billion loss.

The NGX All-Share Index and Market Capitalisation depreciated by 2.03% to close the week at 97,432.02 and N59.039 trillion respectively.

Similarly, all other indices finished lower with the exception of NGX Banking, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth, NGX MERI Value, NGX Oil & Gas and NGX Growth, which appreciated by 0.19%, 1.76%, 1.52%, 0.16%, 0.48%, 1.15%, and 0.07% respectively while the NGX ASeM index closed flat.

A total turnover of 2.717 billion shares worth N54.632 billion in 46,848 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.142 billion shares valued at N85.946 billion that exchanged hands last week in 41,217 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.821 billion shares valued at N28.958 billion traded in 20,173 deals; thus contributing 67.01% and 53.01% to the total equity turnover volume and value respectively.

The ICT Industry followed with 389.848 million shares worth N6.560 billion in 2,515 deals. Third place was the Conglomerates Industry, with a turnover of 160.993 million shares worth N4.746 billion in 3,623 deals.

Trading in the top three equities namely Fidelity Bank Plc, Chams Holding Company Plc and United Bank for Africa Plc (measured by volume) accounted for 1.225 billion shares worth N17.721 billion in 4,912 deals, contributing 45.10% and 32.44% to the total equity turnover volume and value respectively.

Cowry Research in its outlook said the market is likely to remain volatile considering the “cautious sentiments of investors.”

It, however, noted that with improved corporate earnings or stabilising macroeconomic conditions, the market will rebound.