Trading closed on the Nigerian Exchange (NGX) last week on a bearish note with a loss of N604 billion, following losses posted by highly capitalised stocks.
Speficially, the market capitalisation which opened the week at N20.579 trillion lost N604 billion to close at N19.975 trillion.
Also, the All-Share Index dipped 1,157.82 points or 2.93 per cent to close at 38,324.07 in contrast with 39, 481.89 recorded on the first day of the week.
An analysis of the price movement chart showed that 26 equities posted price appreciated against 41 losers.
C &I Leasing led the laggards’chart in percentage terms with 18.80 per cent to close at N4.06 per share.
Royal Exchange Assurance followed with a loss of 18.42 per cent to close at 62k, while Linkage Assurances Nigeria dipped 13.04 per cent to close at 60k per share.
Conversely, Eternal topped the gainers’ table in percentage terms, gaining 21.21 per cent to close at N8 per share.
Prestige Assurance gained 15.22 per cent to close at 53k, while Sterling Bank rose by 12.84 per cent to close at N1.67 per share.
In all, 1.05 billion shares worth N11.54 billion were exchanged by investors in 17,233 deals during the week under review.
This is in contrast with a total of 840.33 million shares valued N9.56 billion traded in 13,239 deals the previous week.
Commenting on the week’s performance, the Chief Operating Officer, InvestData Ltd., Mr Ambrose Omordion, attributed the bearish mood to losses posted during the period by some blue chips.
“The nation’s stock market witnessed a bearish week as a result of high capitalised stocks that seem overpriced that suffered losses on low dividend yields,” Omordion said.
He added that profit taking and portfolio repositioning on the strength of first quarter numbers and economic data ahead of half year earnings report contributed to the development.
On the performance of the stock market this week, Omordion said the market might witness a rebound depending on the outcome of the Monetary Policy Committee (MPC) meeting slated for May 24 and 25.
He, however, said the MPC members should not be in a hurry to hike rates in the midst of the rising insecurity in the country.
“If the rates are retained, the market will breathe out immediately, on positioning for March year end audited accounts, half year interim dividend and second quarter earnings season,” he said.
According to him, the first quarter Gross Domestic Product data expected to hit the market on Monday is another factor that will determine the direction of the stock market.
Also speaking, Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said the downward trend last week was due to losses recorded by Airtel Africa, MTNN, Dangote Cement and BUA Cement.
Kurfi said that the decision of the MPC would either enable the market to make some recovery from the previous loss or increase it, especially if rates were not retained as before.