Investors Limit Exposure to Stocks as Christmas Approaches

By Dipo Olowookere

Investors in the nation’s equity market are beginning to limit their exposure to stocks as their festive period draws closer.

Last week, a total of 1.3 billion shares worth N15.3 billion exchanged hands in 18,292 deals in contrast to the 2.6 billion shares worth N26.9 billion transacted in 20,848 deals a week earlier.

As usual, financial stocks led the activity chart with 899.8 million units worth N7.3 billion in 9,326 deals, contributing 68.32 per cent and 47.78 per cent to the total trading volume and value respectively.

Consumer goods equities trailed with 209.5 million units valued at N2.8 billion transacted in 2,866 deals, while conglomerates shares recorded a turnover of 93.8 million units worth N663.1 million in 485 deals.

The trio of FBN Holdings, International Breweries and Access Bank were the most traded equities in the week, with 469.9 million units worth N4.2 billion in 1,958 deals, contributing 35.68 per cent and 27.20 per cent to the total trading volume and value respectively.

“It is usual to have investors reduce their exposure to the market at this time of the year, especially when there is nothing special to trigger their buying interest,” an investor in the market, Mr Lekan Ajibade, told Business Post over the weekend.

A total of 32 shares were on the gainers’ table in the week, lower than 35 shares in the previous week, while the market closed with 28 depreciating equities, higher than 27 of the earlier week, with 96 stocks closing flat, higher than 94 recorded in the previous week.

The best-performing stock was Meyer as it gained 27.27 per cent to close at 42 kobo, Royal Exchange rose by 15.00 per cent to 69 kobo, FTN Cocoa grew by 13.51 per cent to 42 kobo, Pharma-Deko appreciated by 10.00 per cent to N2.20, while Custodian Investment jumped by 9.86 per cent to N7.80.

At the other side, Champion Breweries was the worst-performing stock after its value depreciated by 13.65 per cent to N2.34.

UPDC went down by 10.17 per cent to N1.06, eTranzact declined by 9.57 per cent to N1.89, Cutix fell by 9.43 per cent to N2.40, while UPDC REIT dropped 6.82 per cent to trade at N4.10.

Business Post reports that the All-Share Index and market capitalisation appreciated in the week by 1.12 per cent and 1.16 per cent to 42,353.31 points and N22.107 trillion respectively.

Similarly, all other indices finished higher with the exception of main board, banking, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth and energy indices which depreciated by 0.22 per cent, 1.82 per cent, 2.23 per cent, 0.08 per cent, 0.85 per cent and 0.57 per cent respectively while the ASeM, growth and sovereign bond indices closed flat.