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Business News of Sunday, 21 November 2021


Stock market decline by N18bnon profit-taking in total, GTCO, FBN holdings

NGX Group NGX Group

Bearish sentiments dominated the stock market of the Nigerian Exchange Limited (NGX) last week, as the market recorded losses on four of the five trading sessions following investors’ profit-taking activities.

Notably, profit-taking in Total, Guaranty Trust Bank Plc (GTCO), FBN Holdings Plc and Nigerian Breweries Plc drove the weekly loss by N18billion when the market capitalisation closed at N22.554 trillion last week from N22.572 trillion it opened for trading.

Consequently, the NGX All-Share index declined by 0.12per cent to settle at 43,199.27 basis points from 43,253.01 basis points, with the Month-Till-Date (MTD) and Year-Till-Date (YTD) return settling at 2.8per cent and 7.3per cent, respectively.

The stock price of Total Lenergies Marketing Nigeria Plc dropped by 9.9 per cent to N216.80, while GTCO depreciated 7.5 per cent to N25.40 last week. Also, FBN Holdings and NB declined by 3.7 per cent and 2.8 per cent to N11.55 and N51 respectively

Activity levels were mixed, as trading volumes declined by 4.8per cent w/w while value grew by 33.4per cent week-on-week (w/w). Sectoral performance was broadly bearish as all sectors closed in the red.

The Oil and Gas (-3.6per cent) led the losers’ chart followed by Banking (-1.6per cent), Consumer Goods (-1.4per cent), Insurance (-0.5per cent), and Industrial Goods (-0.1per cent) indices.

The Exchange in its weekly report said a total turnover of 1.392 billion shares worth N27.886 billion in 19,990 deals were traded last week by investors, in contrast to a total of 1.471 billion shares valued at N20.941 billion that exchanged hands the previous week in 20,410 deals.

Trading in the top three equities namely FBN Holdings Plc, GTCO and Sterling Bank Plc (measured by volume) accounted for 638.319 million shares worth N8.542 billion in 4,116 deals, contributing 45.85per cent and 30.63per cent to the total equity turnover volume and value respectively.

The Exchange added that a total of 65,606 units valued at N68.507 million were traded last week in nine deals compared with a total of 56,655 units valued at N60.795 million transacted the previous week in 26 deals.

Ahead of the stock market trading this week, analysts at Cordros research said: “In the week ahead, we expect a mixed market performance as the bulls and bears are likely to be in gridlock due to the opposing forces of bargain-hunting activities in stocks with attractive dividend yields ahead of 2021FY dividend declarations and intermittent profit-taking activities.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”