Despite Strike, Trading Persists on NGX; Investors Suffer N103 Billion Loss
Last week, the equity market saw a slight downturn, with investors losing a significant amount totaling N103 billion. This setback followed sell-offs in Tier-one banking stocks and cautious trading practices.
The decline was particularly noticeable in major banking stocks such as FBN Holdings, United Bank For Africa (UBA), Access Corporation, Fidelity Bank, Transnational Corporation, Nigerian Breweries, WAPCO, ETranzact, among others.
As a result of these sell-offs, the market capitalization, which opened at N56.172 trillion, saw a decrease of N103 billion, settling at N56.069 trillion. The All-Share Index also experienced a decline of 0.18 percent or 112 points, closing at 99,118.86.
Despite the losses, it’s important to note that the ongoing indefinite strike by workers under the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) did not significantly impact trading activities on the Nigerian Exchange Group (NGX). Generally, labor strikes do not typically affect trading on the exchange, as it operates independently of workers’ unions.
Commenting on the market performance, Mr. Haruna Kebira, a Stockbroker with Global View Capital Ltd., explained that the market slowdown witnessed at the beginning of the week is a common occurrence, especially during the first week of a new month. He attributed the bullish run experienced the previous week to month-end effect activities.
Kebira expressed optimism about the market’s future performance, anticipating a positive rebound by mid-week. He mentioned that June tends to be a favorable month for the market, as investors who receive dividends often reinvest in stocks, boosting market activity.
Although the market saw a decline, the market breadth closed positive with 23 gainers and 17 losers. Cornerstone Insurance and Deap Capital Management and Trust Plc led the gainers’ table, while ETranzact and Unity Bank were among the top losers.
In terms of trading volume and value, Veritas Kapital and Guaranty Trust Holding Company (GTCO) were the top performers, indicating substantial activity in those stocks.
Overall, while the market experienced a brief setback, experts remain optimistic about its resilience and expect a positive turnaround in the coming days.
