Nigerian Bourse Down By N39bn as DANGCEM Price Falls

The Nigerian bourse market capitalisation went down by about N39 billion as negative price movement on Dangote Cement (Ticker: DANGCEM) wiped off gains recorded over the week. This marked the second weekly loss amidst growing uncertainties in the economy.

Supporting the weekly loss, equities investors trading highs and lows on the Nigerian Exchange have begun to reshuffle their portfolios ahead of third-quarter earnings. Alpha seekers are positioning heavily in growth, and value stocks amidst a series of corporate announcements.

Dangote Cement’s negative price movement eclipsed BUAFOODs and Airtel Africa’s price appreciation. Due to a bearish outing, the local bourse key performance indicators declined, with year-to-date return moderating further for the second week, settling at 31.36%, though still far ahead of an annual inflation rate of 25.8%.

Top gainers for the week include ELLAHLAKES (29%), E-TRANZACT (29%), CHAMS (19%) and JAPAULGOLD (18%). The laggards are MCNICHOLS (13%), UNITY (11%), and DANGCEM (8%). Despite starting the week on a brighter note, market analysts reported that the local bourse dropped by -0.11% due to profit-taking in some medium and large-scale stocks.

In their separate market updates, Stockbrokers reported that trading activity throughout the week trended on mixed sentiments, as evidenced by the weekly tally of deals which decelerated by 13.70% week-on-week to 38,536 deals.

Moreover, the average traded volume witnessed a modest weekly increase of 33.36%, settling at 3.91 billion units. However, the weekly average value declined by 35.97% week on week, reaching a value of N30.38 billion. According to trading results, the stock market Index or the All-share index was down by 11 basis points week-on-week deceleration in the benchmark index to 67,324.59 points

On Friday, Market Sees Largest Weekly Loss

The stock market lost N518.16 billion on Friday due to strong selling rallies. Key performance indicators were down by 1.39% in single day transactions amidst uncertainties over the monetary policy.

Stockbrokers said market activities were down, as the total volume and total value traded for the day reduced by -8.49% and -25.16% respectively. Approximately 1,028.44 million units valued at ₦4,354.91 million were transacted in 6,370 deals. UNIVINSURE was the most traded stock in terms of volume, accounting for 65.20% of the total volume of trades, followed by STERLINGNG (6.34%), OANDO (5.85%), ACCESSCORP (3.21%), and UBA (2.40%) to complete the top 5 on the volume chart.

OANDO was also the most traded stock in value terms, with 16.54% of the total value of trades on the exchange.

NEM topped the advancers’ chart for today with a price appreciation of 10.00 per cent, trailed by LASACO (9.68%), CORNERST (+9.60%), SUNUASSUR (+9.38%), DAARCOMM (+8.70%), and twenty-three others.

Twenty-six stocks depreciated on Friday. OANDO was the top loser, with a price depreciation of -9.89%. DANGCEM (-8.49%), LIVESTOCK (-5.76%), JAPAULGOLD (-3.85%), FCMB (-3.07%), and FTNCOCOA (-1.05%) also dipped in price.

Given the trend, the market breadth closed positive, recording 28 gainers and 26 losers. However, the market sector performance closed positive.  Four of the five major market sectors were up, led by the Insurance sector, which grew by (+3.32%). The Index was followed by the Banking sector (+0.75%), the Oil & Gas sector (+0.28%), and the Industrial sector (+0.11%). The Industrial sector was down by 4.77%.

On weekly comparison, the Insurance sector emerged as the top gainer this week by 3.34%. The sector was trailed by the Consumer goods (+2.98%), Banking (+0.61%) and the Oil & Gas sectors (+0.56%) accordingly. 

On the contrary, the Industrial Goods sector closed the week negative by 4.80% week on week owing price decrease in DANGCEM.  Over a week, the equities market went down by ₦38.9 billion to N36.8 trillion. #Nigerian Bourse Down By N39bn as DANGCEM Price Falls

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