Bearish Trend Persists: Equity Market Loses N51bn
The Nigerian Exchange (NGX) faced another bearish week as it witnessed a significant loss of N51 billion.
The decline was primarily attributed to Nestle Plc, Eterna, and Fidson Healthcare Plc, which experienced dips of 10 percent, 9.97 percent, and 9.82 percent, respectively.
Analysts at Cowry Asset Management Limited projected this trend to persist as investors awaited catalysts and policy direction from economic managers.
Analyst, Cowry Asset Management Limited, commented, “As we anticipate more corporate releases for the final quarter of 2023, investors will begin to rebalance their portfolio in their search for alpha amidst the rising fixed-income yields and outcome of the monetary policy meeting.”
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Transaction Volume Rises Marginally Despite Equity Market Loss
Despite the bearish trend, there was a marginal rise in transaction volume by 1.14 percent, reaching 294.32 million units.
The value of transactions also increased by 12 percent to N6.72 billion. Meanwhile, the number of deals surged by 29 percent to 9,957 compared to the previous day’s figure, with 120 stocks traded.
Sectoral Performance Varied: Banking Sector Leads Gainers As Equity Market Loses
The sectoral performance showed a mixed trend, with the banking sector leading the gainers’ list with a 1.35 percent increase. This surge was fueled by buying interest in FBN Holdings, JaizBank, and Sterling Financial Holdings Plc.
Conversely, the consumer goods and oil/gas indexes witnessed declines of 1.46 percent and 0.37 percent, respectively, due to selling pressure observed in Nestle, Dangote Sugar, and Eterna Plc. The insurance sector gained 0.18 percent, while the industrial goods sector traded flat.
Market sentiment edged positive with 28 gainers and 26 losers. NASCON Industries led the gainers chart with a 10 percent increase, followed by Juli Plc, which gained 9.83 percent, and FBN Holdings with a 9.68 percent appreciation.
The market’s cautious sentiment is attributed to the higher yield outlook in the fixed-income market, leading to a waning interest in the equity market.
Additionally, portfolio rebalancing ahead of expected corporate earnings and the outcome of the Monetary Policy Committee meeting further influenced market dynamics.