Last week’s sell-offs in the stock market resulted in five days of consecutive losses for investors on the floor of the Nigerian Exchange as investors saw about N1.22tn shaved off their wealth at the end of the week,
Reacting to this development, some analysts pinned the sell-offs in the market on portfolio balancing activities of investors, who offloaded some shares like newcomer, Aradel which dipped by 25.75 per cent week-on-week, and BUA Cement whose value dipped by 11.09 per cent compared to the previous week.
And researchers at Cowry Assets Management Limited Lagos blamed the negative trading pattern on cautious trading behaviour as investors grappled with economic uncertainties.
They also attributed the loss to the latest macroeconomic data releases such as the data on internally generated revenue across its 36 states and the Federal Capital Territory for 2023 released by the National Bureau of Statistics.
To close the week, the All-Share Index took a sharp 2.03 per cent week-on-week haircut, closing at 97,432.02 points. The market capitalisation dropped by 2.03 per cent week-on-week to settle at N59.04tn, wiping out N1.22tn in gains from prior weeks. As a result, the year-to-date return of the index settled at 30.30 per cent.
In terms of trading activities, a total turnover of 2.717 billion shares worth N54.632bn were traded in 46,848 deals compared to 2.142 billion shares valued at N85.946bn that exchanged hands last week in 41,217 deals.
The Financial Services Industry led the activity chart with 1.821 billion shares valued at N28.958bn traded in 20,173 deals; thus contributing 67.01 per cent and 53.01 per cent to the total equity turnover volume and value, respectively.
The ICT Industry followed with 389.848 million shares worth N6.560bn in 2,515 deals. Third place was the Conglomerates Industry, with a turnover of 160.993 million shares worth N4.746bn in 3,623 deals.
The top three equities measured by volume include Fidelity Bank Plc, Chams Holding Company Plc and United Bank for Africa Plc which accounted for 1.225 billion shares worth N17.721bn exchanged in 4,912 deals, contributing 45.10 per cent and 32.44 per cent to the total equity turnover volume and value, respectively.
