Investors lose 21 billion naira as transaction value drops 15%

The value of transactions on the Nigerian Exchange Ltd. (NGX) fell by 15 percent during the week, resulting in a loss of 21 billion naira for investors compared to the previous week.

Specifically, investors traded 2.259 billion shares valued at 31.166 billion Naira in 42,851 deals during the week.

This is in contrast to the previous week’s turnover which saw 2.651 billion shares valued at N49.976 billion traded in 41,610 transactions.

The financial services industry topped the activity chart by volume, with 1.801 billion shares valued at N22.03 billion traded in 23,112 deals.

They thus contributed 79.75 percent to the total share turnover volume or value.

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This was followed by the oil and gas industry with 121.001 million shares valued at N1.771 billion in 3,124 deals.

Third place went to the conglomerate industry with a turnover of 90.713 million shares valued at 1.081 billion Naira in the year
2,277 offers.

Trading in the top three stocks, namely Fidelity Bank Plc, Universal Insurance Plc and Guaranty Trust Holding Company Plc, in terms of volume, totalled 909.821 million shares valued at N12.057 billion in 4,798 transactions.

They contributed 40.28 and 38.69 percent, respectively, to the total equity turnover volume and value.

Consequently, the NGX All-Share Index and market capitalization declined by 0.04 percent to close the week at N100,022.03 and N56.581 trillion respectively, compared to N100,057.49 and N56.602 trillion respectively in the previous week.

This resulted in a week-on-week loss of 21 billion Naira for investors.

All other indices closed higher, except NGX 30, NGX Premium, NGX MERI Value, NGX Consumer Goods, NGX Lotus II and NGX Pension Broad, which lost value.
by 0.27, 0.52, 0.01, 0.69, 0.56 and 0.07 percent.

Meanwhile, the NGX ASeM and NGX Sovereign Bond indices closed unchanged, while 37 stocks rose less than 48% for the week.
Stocks in the previous week.

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45 stocks lost value, more than 34 in the previous week, while 72 stocks remained unchanged, the same number as in the previous week (72).

Veritas Kapital Assurance Plc topped the gainers list with 25 percent to close at N1.15 per share, while UPDC Real Estate Investment Trust topped the losers list with 17.43 percent to close the week at N4.50 per share.

Meanwhile, looking ahead to the coming week, analysts at Cowry Asset Management Ltd. predicted that bulls would take the lead as the semi-annual earnings season approaches.

Analysts said position taking and sector rotation are expected to continue ahead of the new reporting season.

They believe this will lead to changes in liquidity, momentum and volume, as well as reactions to both positive earnings and disappointing numbers, driving the volatility that creates prosperity for market participants.