NGX: Equity Investors Grapple With N437bn Loss As ASI Dips To 103,649 Points

Equity markets experienced a challenging start to the week as investors grappled with a significant loss of N437bn.

The All-Share Index and market capitalization of the Nigerian Exchange faced a 0.73% and 0.76% decline, culminating in a closure at 103,659.81 points and N56.72tn, respectively.

Market Breadth, acting as a barometer for investor sentiment, portrayed a mixed picture with 28 losers and 28 gainers. Cadbury, Cornerstone Insurance, Meyer Plc, Daar Communications, and May&Baker emerged as the day’s gainers, each securing a 10% increase in their closing values.

Conversely, Abbey Mortgage Bank, Livestock, Fidelity Bank, JAIZ Bank, and MTN Nigeria found themselves on the losers’ side, experiencing notable declines ranging from 5.52% to 9.70%.

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The day’s trading dynamics were driven by FBNHoldings, Nigerian Breweries, and Transcorp Plc, with FBNH leading in both volume and value, trading 332.30 million units worth N8.95bn.

Although the traded volume for the day decreased to 841.55 million units compared to the previous day, valued at N19.32bn, the sectoral performance presented a mixed bag.

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The Banking and Consumer Goods indexes saw declines, while the Insurance and Industrial Indexes increased, and the Oil/Gas sector remained flat.

Looking ahead, analysts from Cowry Research anticipate a positive market trend but foresee potential profit-taking. Investors are expected to continue sectoral rotation, seizing opportunities presented by stocks experiencing pullbacks and strategically positioning themselves in anticipation of upcoming corporate earning releases.

This rotation strategy is seen as a driver for further buying opportunities in the ongoing corporate reporting season.

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