The Nigerian Exchange Limited witnessed a slowdown in bullish trading last week, resulting in a modest gain of N8 billion for investors. Market capitalization started the week positively at N35.539 trillion on Monday and reached N35.932 trillion on Tuesday. However, after the announcement of an increase in the Monetary Policy Rate to 18.50 per cent, the market experienced a gradual decline, ending the week at N35.402 trillion on Friday.
Despite the slowdown, the NGX All-Share Index and most market indices showed slight gains, except for NGX Main Board, NGX CG, NGX Banking, and other specific sectors that experienced depreciation.
A total of 2.854 billion shares valued at N37.645 billion were traded by investors during the week, showing a decrease compared to the previous week’s total of 4.182 billion shares worth N99.048 billion. The Financial Services Industry dominated trading activity, accounting for 67.84 per cent of the equity turnover volume and 73.59 per cent of the value. The Oil and Gas Industry followed with 328.578 million shares worth N2.073 billion, and the Conglomerates Industry stood third with 156.660 million shares valued at N692.091 million.
The top three equities in terms of volume were FBN Holding Plc, Japaul Gold & Ventures Plc, and United Bank for Africa Plc, which collectively accounted for 34.62 per cent of the total equity turnover volume and 35.27 per cent of the value.
Opinion:
The Nigerian stock market’s modest gain amid the slowdown in bullish trading indicates resilience in the face of changing market dynamics. While some sectors experienced depreciation, the overall performance is encouraging. However, it’s essential for investors to remain cautious as uncertainties in the financial landscape persist. Monitoring the market closely and diversifying investment strategies can help navigate fluctuations and capitalize on potential opportunities.
Despite some sectors experiencing depreciation, overall market resilience is evident. Investors are advised to stay cautious and diversify strategies amidst uncertainties.