The Nigerian Exchange Limited saw a significant downturn last week as investors lost N847 billion due to a wave of profit-taking and selloffs. This decline pushed the NGX market capitalisation down to N55.131 trillion, a steep drop from the previous week’s N55.978 trillion.
The NGX All Share Index another key indicator of market health, also experienced a 1.5% decline, closing on Friday at 97,100.31 points, down from 98,592.12 points the week before.
The widespread profit-taking across key sectors put downward pressure on the market, though it simultaneously presented opportunities for investors to acquire valuable stocks at discounted prices.
Amidst these developments, several companies informed the Exchange of their upcoming Annual General Meetings, including FBN Holdings. Additionally, Airtel Africa provided updates on its ongoing share buyback program.
In light of the market volatility, analysts advised investors to focus on companies with strong fundamentals, consistent dividend payouts, and robust growth potential, as these factors can drive future earnings growth regardless of market conditions.
Meanwhile, Month-to-Date and Year-to-Date returns moderated to -0.7% and +29.9%, respectively.
Trading activity also saw a dip, with trading volume and value declining by 24.1% and 1.4% Week on Week respectively. Sector performance was mixed, with the Oil & Gas Index climbing 5.3%, the Insurance Index up 0.8%, and the Consumer Goods Index increasing by 0.4%. Conversely, the Industrial Goods Index fell by 5.2%, and the Banking Index dropped by 2.3%.
On outlook for the week, analysts at Cordros Research stated: “Looking ahead, we still expect bearish sentiments to remain the key theme as investors remain cautious and continue to exhibit weak appetite for equities. Furthermore, we believe the developments in the macroeconomic landscape and corporate actions of the upcoming earnings season will influence investors’ sentiments over the near-term.”
(allnews.ng)
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