Investors Cut Exposure to Stocks as Trading Value Shrinks to N85.197bn

By Dipo Olowookere

The level of activity on the floor of the Nigerian Exchange (NGX) Limited shrank last week as investors re-examined their portfolios, cutting down their exposure to local stocks.

In the five-day trading week, market participants transacted 2.735 billion shares worth N85.197 billion in 127,284 deals versus the 3.188 billion shares valued at N99.685 billion traded in 132,711 deals in the preceding week.

Financial equities dominated the activity chart with 1.909 billion units sold for N37.834 billion in 56,026 deals, contributing 69.79 per cent and 44.41 per cent to the total trading volume and value, respectively.

ICT shares posted a turnover of 184.870 million units valued at N6.189 billion in 12,893 deals, and services stocks exchanged 176.506 million units worth N813.252 million in 6,011 deals.

Abbey Mortgage Bank, Fidelity Bank, and United Bank for Africa (UBA) accounted for 875.822 million shares worth N16.417 billion in 11,389 deals, contributing 32.02 per cent and 19.27 per cent to the total trading volume and value apiece.

Guinness Nigeria was the best-performing stock after its value rose by 28.60 per cent to N183.90, Multiverse gained 21.30 per cent to settle at N13.95, Eunisell expanded by 20.28 per cent to N30.55, eTranzact advanced by 11.71 per cent to N16.70, and Chellarams went up by 9.77 per cent to N14.60.

However, Omatek was the worst-performing stock as it lost 18.18 per cent to quote at N1.08, Cornerstone Insurance depleted by 15.42 per cent to N6.20, Secure Electronic Technology decreased by 12.79 per cent to 75 Kobo, Royal Exchange slipped by 11.30 per cent to N2.04, and UBA contracted by 9.24 per cent to N44.20.

Business Post reports that at the close of transactions for the week last Friday, a total of 40 shares appreciated versus 70 shares a week earlier, 41 equities depreciated compared with 22 equities in the previous week, and 66 stocks closed flat, in contrast to the 55 stocks posted in the previous week.

Last week, the All-Share Index (ASI) and the market capitalisation appreciated by 0.92 per cent to 141,845.35 points and N89.744 trillion, respectively.

Similarly, all other indices finished higher apart from the NGX CG, premium, banking, pension, insurance, NGX-AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth, and NGX MERI Value, which depreciated by 1.04 per cent, 1.14 per cent, 2.57 per cent, 0.15 per cent, 4.67 per cent, 3.66 per cent, 1.74 per cent, 0.80 per cent, and 3.73 per cent, respectively, while the AseM index closed flat.