After N586m loss by investors, analysts see profit-taking opportunities lurking Bears hold sway despite primary share sales from MTN Nigeria

PERFORMANCE dominated the local bourse last week after the market was lifted by block trades in names like First Bank Holding and Seplat Energies, but while being dragged by the selling pressure seen in some Tier-I banking names.

As a result, the benchmark index closed negative in all trading sessions as the NGX All-Share index shed 2.6 percent week on week to close at 42,167.91 points, while the market year to date return moderated to 4.7 percent.

With the underwhelming performance reported last week, the NGX investors lost N586 million despite the positive rally in the primary offer from MTN Nigeria as market capitalisation retreated to N22 trillion from N22.58 trillion the previous week. This week, analysts expect more profit-taking opportunities to persist amid persistent negative market sentiment.

The top traded stocks by volume were First Bank Holding (265.6 million units), Zenith Bank (85.1 million units), and Access Bank (80.5 million units), while First Bank Holding (N3.1 billion), Zenith Bank (N2.0 billion), and Seplat Energies (N1.1 billion) led the top traded securities by value last week.

Across the various sector performance, it was a bearish outing as all indices closed negative, save the insurance index which rose three percent week on week due to bargain hunting in NEM Insurance (+18.4%) and Linkage Assurance (+9.8%). On the other hand, the ICT index recorded the most losses, down six percent week on week on account of extended profit-taking in MTN Nigeria (-12.1%).

Trailing, the oil & gas and banking indices shed 4.5 percent and 2.3 percent week on week, respectively, driven by sell pressure on Seplat Energies (-6.5%), Oando Plc (-8.7%), Guaranty Trust Holding Company (-3.6%), and Zenith Bank (-3.5%).

In the same vein, price depreciation in Dangote Sugar (-2.7%), Honeywell Flour Mills (-11.6%), and Lafarge Africa (-1.4%) brought the consumer and industrial Goods indices down by 0.6 percent and 0.1 percent week on week, respectively.

And as measured by market breadth, investor sentiment waned to 0.4x from 0.8x recorded the previous week as 17 stocks advanced against 46 stocks that declined. The top outperformers for the week were NEM Insurance (+18.4%), Meyer Plc (+10.0%), and Linkage Assurance (+9.8%), while UPDC (-18.8%), FTN Cocoa Processors (-12.5%), and MTN Nigeria (-12.1%) led the laggards.

Meanwhile, the NGX 30 Index decreased by 3.25 percent week on week to close at 1,691.51 points, against 1,748.42 points the previous week. Market turnover closed with a traded volume of 114.74 million units. UBN and United Capital were the key gainers, while First Bank Holding and Guaranty Trust Holding Company were the key losers.