Despite the positive gain of N21.7 billion recorded by listed equities on the NGX on Thursday, market analysts have said their expectations from the local bourse in this week’s final session will end in the bears, driven by weakened investors’ sentiment and profit-taking.
Gains recorded on Thursday were from strong buying interests witnessed in Dangote Cement (+0.7%), Honeywell Flour (+10.0%), and Unilever Nigeria Plc (+0.7%) propped up positive performance on the local bourse as the All-Share index rose by 0.11 percent to close at 39,490.06 points, resulting in an improvement on the year to date loss of the market to -1.9 percent while market capitalisation rose to N20.57 trillion from N20.55 trillion on the last close.
Similarly, the trading activity level strengthened as the total volume and total value traded rose 214.3 percent and 9.2 percent respectively to 570.2 million units and N2.3 billion in 3,764 deals. The most traded securities by volume were Honeywell Flour (384.1m units), Vitafoam (21.4m units), and FCMB (13.6m units), while Honeywell Flour (N654.2m), Vitafoam (N331.2m), and Zenith Bank (N269.8m) led by value.
Negative performance pervaded the sectoral front as the ICT index closed flat while the industrial goods index was the lone gainer, advancing by 0.4 percent, as a result of buying interest in Dangote Cement (+0.7%).
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On the flip side, the insurance and banking indices led the losers, tanking 1.8 percent and 0.2 percent respectively, due to sell pressure on NEM Insurance (-6.3%), Regency Alliance Insurance (-8.5%), Ecobank (-1.7%) and FCMB (-1.3%).
In the same vein, the oil & gas and consumer goods indices fell by 23 basis points and 2 basis points respectively, driven by price depreciation in Oando Plc (-1.2%) and Dangote Sugar (-2.8%).
Investors’ sentiment as measured by market breadth faded, settling at 0.4x from 1.4x recorded in the last trading session as 8 stocks advanced while 22 stocks declined. Honeywell Flour (+10.0%), Wema Bank (+3.9%), and Flour Mill (+3.1%) led gainers while Tripple G (-9.3%), Regency Alliance Insurance (-8.5%), and Prestige Assurance (-8.3%) led losers.
At the close of the day, the NGX 30 Index marginally increased by 0.07 percent to close at 1,636.13 points as against 1,634.99 points on the previous day. Market turnover closed with traded volume of 90.38 million units. Flour Mills and Guaranty Trust Holding Company were the key gainers, while Sterling Bank and Dangote Sugar were the key losers.