In a week marked by significant sell-offs, United Bank for Africa Plc, Fidelity Bank Plc, and Access Holdings Plc emerged as the dominant forces on the Nigerian Exchange Limited (NGX), despite widespread losses.
These three banks accounted for trades involving 447.125 million shares valued at N6.488 billion across 4,913 deals, making substantial contributions to the week’s total equity turnover. However, the market faced headwinds, with the All-Share Index dipping by 0.42% to settle at 66,915.41 points, erasing N156 billion from market capitalization, following declines in major sectors except for a buoyant banking sector.
Global market trends also influenced local sentiments, with escalations in the Israel-Hamas conflict and speculations around U.S. interest rate hikes unsettling investors. These international developments, detailed in a report by The Sun, mirrored the shaky performances across American markets, reflecting in reactions to the DJIA and S&P 500 indices.
Investors’ confidence was further shaken by Nigeria’s shrinking government revenue, which, at N4.83 trillion, fell short of the anticipated N5.03 trillion. This economic shrinkage, alongside a staggering 26.72% inflation rate – a record peak since 2005 – prompted market players to withdraw, signaling diminishing investor confidence.
The NGX’s weekly report showed a bustling trading floor where 1.496 billion shares, worth N24.284 billion, changed hands in 29,298 deals. Financial Services led these transactions, with ICT and Conglomerates following, indicating a persistent investor focus on these sectors.
Market experts anticipate the upcoming trading week to be earnings-driven, advising investors to prioritize stocks with solid fundamentals amidst prevailing macroeconomic challenges.
