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NGX: Investors Lose N103bn as Insurance and Banking Stocks Decline

The NGX Insurance Index led the losers during the Sallah holiday-shortened week, falling by 1.32% week-on-week. This contributed to a 0.18% decline in the broader market indices. The NGX 30 Index followed with a 0.16% decline, and the NGX Banking Index fell by 0.04% week-on-week. Conversely, the NGX Oil and Gas Index led the gainers, rising by 0.35% week-on-week, followed by the NGX Consumer Goods Index, which increased by 0.29%. The NGX Pension Index rose by 0.20%, and the NGX Industrial Goods Index advanced by 0.10% week-on-week.

Sell pressure in the declined sectors led to negative price movements in stocks such as VFD Group, AIICO Insurance, AXA Mansard, FBN Holdings, Fidelity Bank, Zenith Bank, MTN Nigeria, and Transcorp Hotel. Consequently, the NGX All-Share Index and market capitalization depreciated by 0.18% to close the week at 99,743.05 and N56.424 trillion, respectively, compared to 99,925.38 and N56.527 trillion in the previous week. As a result, investors lost N103 billion week-on-week.

Meanwhile, 53 equities appreciated in price during the week, higher than 51 equities in the previous week. Conversely, 25 equities depreciated in price, higher than 24 in the previous week, while 76 equities remained unchanged, lower than 79 recorded in the previous week. A total turnover of 3.301 billion shares worth N53.157 billion in 27,536 deals was traded this week by investors on the floor of the Exchange, in contrast to 2.633 billion shares valued at N43.652 billion that exchanged hands last week in 33,709 deals. Trading in the top three equities, namely Fidelity Bank Plc, FBN Holdings Plc, and Veritas Kapital Assurance Plc, measured by volume, accounted for 2.469 billion shares worth N37.405 billion in 3,006 deals, contributing 74.80% and 70.37% to the total equity turnover volume and value, respectively.

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Additionally, NGX30Z4 and NGXPENSIONZ4 Futures Contracts were listed on the NGX on Wednesday at N3,905 and N3,885, respectively, expiring on Dec. 20. Fidelity Bank Plc’s rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share on the basis of one new ordinary share for every existing 10 ordinary shares held as of the close of business on Jan. 5 opened on Thursday and will close on July 29.

Looking ahead to the next week, analysts at Cowry Asset Management Ltd. predict that the local bourse will trade in mixed sentiment, driven by low valuation and portfolio repositioning for value stocks. They advise market players and investors to trade in stocks of companies with sound fundamentals as trading volume patterns continue to fluctuate. The present market outlook suggests buying interest in some sectors and profit-taking in others, amid a wait-and-see attitude.