As investors lost N119bn
By Nkiruka Nnorom
Bearish sentiments continued to pervade activities in the Nigerian Exchange Limited (NGX) following sell-off in the shares of banking stocks, resulting in N119 billion losses to investors during the week.
Specifically, sell-off in banking stocks including Access Corporation formerly Access Bank Plc, (-6.2%), United Bank for Africa (UBA) Plc (-6.0%), FBN Holdings Plc (-5.7%), Union Bank of Nigeria (UBN) Plc (-4.2) and Zenith Bank Plc (-1.5%) dragged the market to a second consecutive week of losses.
Consequently, the market capitalisation of all listed equities declined by N119 billion or 0.44 percent to close at N26.686 trillion from N26.805 trillion in the previous week.
Similarly, the NGX All Share Index (ASI) slid by 0.44 percent to close 49,475.42 points.
Activity levels were weak, as trading volume and value declined by 24.3 percent and 14.1 percent to close at 719.389 million units and N8.004 billion from 949.819 million units and N9.329 billion respectively.
Sectoral performance was negative as all the five sectors posted losses with the banking sector leading the pack with a 3.3 percent decline.
This was followed by the insurance (-2.6%), consumer goods (-0.3%), industrial goods (-0.2%) and oil & gas sector (-0.2%).
In their comment, analysts at Cordros Capital said: “We expect alpha-seeking investors to rotate their portfolios towards cyclical stocks that delivered decent earnings during the Q2-22 earnings season amid the yield uptick in the fixed income market.” They, however, maintained that the absence of a near-term catalyst would likely skew overall market sentiments to the negative side, particularly as the political space gets heated. They reiterated the need for positioning in fundamentally sound stocks, saying that the unimpressive macro environment remains a significant headwind for corporate earnings.