In view of the recent downgrading of Nigerian stocks by a global index provider, FTSE Russell, it will be excluded from the FTSE Frontier Index Series, the FTSE Frontier 50 Index and others. NGX market cap

Earlier on Monday, September 18, 2023, a global index provider, FTSE Russell, downgraded Nigeria’s equity index from ‘frontier’ to ‘unclassified’ market status.

FTSE Russell made this decision on the back of Nigeria’s ongoing foreign exchange (FX) crisis.

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FX crisis in Nigeria is a major problem for international institutional investors seeking repatriation of their capital from the nation.

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Implication 

This means that Nigerian stocks will be excluded from the FTSE Frontier Index Series, the FTSE Frontier 50 Index and others.

This is coming as the third quarter reporting season draws closer and investors take a bet on the back of recently published macroeconomic data.

Bearish momentum and pattern pervaded the domestic market last week with the benchmark index recording a 1.10% week-on-week loss.

The local bourse reversed prior to week’s gains as the All-Share index declined by 1.10% week-on-week (W-o-W) to close at 67,395.74 basis points.

Similarly, the total market capitalisation of listed equities experienced a decline of ₦400 billion week-on-week to close at ₦36.886 trillion.

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Market breadth for the week was negative as 32 equities appreciated in price, 53 equities depreciated in price, while 70 equities remained unchanged.

Market Performance

The week’s performance was driven by profit-taking activities in Zenith Bank, Guaranty Trust Holding Company (GTCO), Dangote Sugar Refinery and MTN Nigeria Communications (MTNN).

Also, the NGX sectoral performance in the week under review unveiled a largely bearish outing, as NGX Insurance index emerged as the lone gainer in the week by 0.46% week-on-week.

Meanwhile, the NGX Banking index was hardest hit in the week, as the index lost 3.24% week-on-week.

The NGX Oil and Gas, NGX Consumer Goods and NGX Industrial Goods indices also exhibited signs of decline, albeit to a lesser extent, with losses of 2.02%, 1.84% and 0.28%, respectively.

Gainers Log

Oando led the gainers’ table by 42.86% to close at ₦11.00 per share.

Chellarams followed with a gain of 32.76% to close at ₦3.85, while CWG went up by 29.76% to close to ₦7.50 per share.

Losers Log

On the other side, Associated Bus Company led the decliners table by 33.63% to close at 75 kobo per share.

Omatek Ventures followed with a loss of 31.03% to close at 40 kobo, while eTranzact International declined by 26.50% to close at ₦7.35 per share.

Trade Volume

Overall, a total turnover of 2.933 billion shares worth ₦47.449 billion in 44,654 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.644 billion shares valued at ₦45.450 billion that exchanged hands prior week in 44,189 deals.

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The financial services industry (measured by volume) led the activity chart with 1.955 billion shares valued at ₦26.384 billion traded in 21,707 deals, contributing 66.67% and 55.61% to the total equity turnover volume and value, respectively.

The oil and gas industry followed with 281.356 million shares worth ₦5.307 billion in 4,423 deals, while the conglomerates industry traded a turnover of 280.586 million shares worth ₦1.763 billion in 3,079 deals.

United Bank for Africa (UBA), Transnational Corporation (Transcorp) and Access Holdings shares accounted for 1.026 billion shares worth ₦13.649 billion in 9,733 deals.

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