The local equities market experienced subdued activity this week, marked by weak trading volumes and values despite favorable market internals.

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Market Analysis:

The All-Share Index (ASI) edged marginally lower by 0.04% week-on-week, closing at 100,022.03 points, retaining a position above the T-line following a reversal from last week’s bullish trend. Investor focus remained on portfolio adjustments ahead of the upcoming earnings season.

The market capitalization of listed stocks mirrored the ASI’s performance, declining by 0.04% to settle at N56.58 trillion due to tepid investor sentiment and subdued market participation. This resulted in a total loss of N20.75 billion over three of the five trading sessions this week, with the year-to-date return standing at 33.77%.

Trading Overview:

Trading activities were notably subdued, evidenced by a 14.8% decline in total traded volume to 2.26 billion units and a 37.6% decrease in traded value to N31.17 billion week-on-week. However, the total number of trades marginally improved by 2.98% to 42,851 deals.

Sectoral Performance:

Despite the overall market decline, sectoral performance was predominantly positive. The NGX-Banking and NGX-Oil & Gas indices led gainers with increases of 3.87% and 3.01%, respectively. The NGX-Insurance and NGX-Industrial indices also posted gains of 2.26% and 0.22% week-on-week. Conversely, the NGX-Consumer Goods sector dipped by 0.69%, influenced by declines in stocks like MAYBAKER, DANGSUGAR, and INTBREW.

Top Performers and Losers:

Notable gainers included VERITASKAP (+25%), CONOIL (+21%), JAIZBANK (+20%), CORONATION (+18%), and AIICO (+13%), driven by positive market activities. Conversely, stocks like UPDCREIT (-17%), IKEJAHOTEL (-12%), LASACO (-10%), JULIUS BERGER (-10%), and MUTUAL BENEFIT (-9%) recorded significant losses amid negative investor sentiment.

Outlook:

Looking ahead, market sentiment is expected to improve as the half-year earnings reporting season approaches. Investors are likely to continue positioning themselves strategically amidst potential sector rotations and changes in market liquidity and momentum. Sound fundamental stocks remain advisable amid evolving market dynamics.

The coming weeks may see heightened volatility driven by reactions to earnings performances, offering opportunities for wealth creation in the equities market.