Trading on the Nigerian Exchange Group (NGX) persisted amidst a backdrop of an ongoing strike, resulting in investors facing a collective loss of N103 billion. The week commenced with a cessation of the previous session’s positive momentum, largely driven by sell-offs in Tier-one banking stocks and cautious market sentiment.
Specifically, notable declines in stocks such as FBN Holdings, United Bank For Africa (UBA), Access Corporation, Fidelity Bank, Transnational Corporation, Nigerian Breweries, WAPCO, ETranzact, and others contributed to the overall market downturn.
Consequently, the market capitalisation, which commenced at N56.172 trillion, depreciated by N103 billion, representing a 0.18 per cent decline, to settle at N56.069 trillion. The All-Share Index also experienced a corresponding decrease of 0.18 per cent or 112 points, closing at 99,118.86 compared to Friday’s figure of 99,300.38.
As a result, the Year-To-Date (YTD) return declined to 32.56 per cent.
Despite the cautious trading atmosphere, it’s noteworthy that the losses observed on the Exchange were not directly linked to the indefinite strike initiated by workers represented by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
Commenting on the situation, Mr Haruna Kebira, a Stockbroker with Global View Capital Ltd., emphasized that Exchange operations typically remain unaffected by national industrial actions, except during Federal Government-declared public holidays.
Kebira clarified that the Exchange Group operates independently of any workers’ union, hence labor strikes generally do not disrupt trading activities.
He attributed the market’s current subdued performance partially to the typical slowdown in trading activities that often characterizes the first week of a new month, following the month-end effect activities that drove the bullish run witnessed the prior week.
Kebira expressed optimism that market sentiment would likely improve as the week progresses.
Despite the overall market decline, there were still positive movements, as exemplified by the performance of Cornerstone Insurance, Deap Capital Management and Trust Plc, and Oando, among others, which recorded gains. Conversely, ETranzact, Unity Bank, and Jaiz Bank were among the top losers.
Analyzing market activities, trade turnover exhibited a decrease compared to the previous session, with transaction value declining by 38.92 per cent. A total of 349.59 million shares valued at N5.24 billion were traded in 8,082 deals, contrasting with the 434 million shares valued at N8.58 billion exchanged in 8,525 deals during the preceding session.
Leading in volume, Veritas Kapital traded 57.95 million shares worth N35.94 million, while Guaranty Trust Holding Company (GTCO) topped in value, transacting 47.63 million shares valued at N47.63 billion.
Despite the prevailing challenges, trading activities continue, showcasing the resilience of the Nigerian stock market amidst various economic dynamics.
