Stock Market Depreciates by 0.21% WoW, Maintains Positive YtD Performance

Kayode Tokede

The stock market of the Nigerian Exchange Limited (NGX) last week closed in negative territory ahead of Christmas and New year celebrations.

The bears dictated proceedings in the stock market, as profit-taking activities dominated performance, with the benchmark index recording declines on three of the five trading sessions of the week.

Specifically, the NGX All-share Index (ASI) declined by 90.46 basis points or 0.21 per cent to close at 42,262.85 basis points from 42,353.31 basis points, while market capitalisation dropped N47 billion week-on-week (W-o-W) to N22.060 trillion.

Consequently, the stock market in its Month-till-Date (MtD) and Year-till-Date (YtD) return settled at -2.3per cent and +4.9per cent, respectively

However, the sector gauges did not mirror the benchmark index as four of the five sub-indices tracked closed in green.

The NGX Banking, NGX Insurance, NGX Consumer Goods and the NGX Industrial indices gained 0.10 per cent, 1.85 per cent, 0.78 per cent and 0.43 per cent to close at 395.76 points, 194.46 points, 554.68 points and 2,090.00 points respectively. However, the NGX Oil & Gas index fell by 0.52 per cent to close at 348.81 points.

The market breadth for the week was positive as 33 equities appreciated in price, 25 equities depreciated in price, while 99 equities remained unchanged. Mutual Benefits Assurance led the gainers table by 23.08 per cent to close at 32 kobo, per share. Consolidated Hallmark Insurance followed with a gain of 20.69 per cent to close at 70 kobo, while Union Bank of Nigeria (UBN) went up by 20.65 per cent to close to N5.55, per share.

On the other side, Julius Berger led the decliners table by 9.88 per cent to close at N22.35, per share. MRS Oil Nigeria followed with a loss of 9.85 per cent to close at N12.35, while Cornerstone Insurance declined by 9.80 per cent to close at 46 kobo, per share.

Overall, a total turnover of 965.061 million shares worth N12.455 billion in 14,802 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.317 billion shares valued at N15.330 billion that exchanged hands previous week in 18,292 deals.

The Financial Services Industry (measured by volume) led the activity chart with 574.223 million shares valued at N4.861 billion traded in 7,794 deals; contributing 59.50 per cent and 39.03 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 246.783 million shares worth N 2.065 billion in 382 deals, while Consumer Goods Industry traded a turnover of 30.307 million shares worth N1.669 billion in 2,157 deals.

Trading in the top three equities; UACN, FBN Holdings (FBNH) and Sovereign Trust Insurance (measured by volume) accounted for 378,555 million shares worth N3.266 billion in 14,802 deals, contributing 39.23 per cent and 26.22 per cent to the total equity turnover volume and value respectively.

However, stock market analysts stated that the market may closed positive this week as the year 2021 comes to an end.

The week is going to be a three days trading session as the federal government declared Monday and Tuesday December 27th and 28th, 2021 as public holidays to mark Christmas and Boxing Day celebration.

The analysts at Cordros Securities Limited said that “As the year draws to a close, we expect yield-seeking investors to take positions in stocks with attractive dividend yields ahead of the 2021 full year dividend declarations. However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”

Also, Cowry Assets Management Limited said that “In the new week, we expect the local bourse to be bullish as investors position in dividend-paying stocks in the last three days of trading session in 2021.”

However, analysts at Afrinvest Limited said “In the last trading week of the year, we expect the market to extend this week’s negative performance as investors rebalance their portfolio.”