Industrial, Consumer goods stocks dip market by 0.92% in October despite new listings

Nigeria’s equities market decreased by 0.92 percent in the month of October. The market’s record dip in October was caused by investors who sold mostly industrial and consumer goods stocks despite increased bargains in oil & gas, banking, and insurance stocks.

NGX Industrial Index decreased by 9.31 percent in the review trading month, while NGX Consumer Goods Index decreased by 0.75 percent. Meanwhile, NGX Oil & Gas Index increased by 15.90 percent, followed by NGX Banking Index (+4.78 percent) and NGX Insurance Index (+4.01 percent).

The last trading week of the review month saw the market record four consecutive days of negative close, which resulted to a cumulative decline of 1.81 percent.

Despite that bearish undertone persists in the equities market, investors are expected to cherry-pick undervalued stocks with strong fundamentals amid ongoing corporate actions (dividend announcements).

The market’s return year-to-date (YtD) lowered to +30.60 percent at the close of trading on October 31 as against +31.81 percent recorded the preceding month end.

Read also: Aradel stocks shed over N900bn in 17 days of listing

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Market Capitalisation opened the review month at 98,558.79 points and N56.635 trillion respectively but closed at 97,651.23 points and N59.171 trillion.

The Nigerian Exchange Limited (NGX) All Share Index (ASI) saw this level of decreased in October despite new listings in the review month that pushed the equities market’s value higher by N2.53 trillion.

On October 14, Aradel Holdings Plc listed by introduction on the NGX its 4.344billion ordinary shares of 50 kobo each at a share price of N702.69, however, the stock’s share price has declined by 28.8 percent since then.

It is currently trading at a share price of N495.10. Aradel listing by introduction on Monday October 14 at N702.69 per share had boosted NGX market capitalisation by N3.05trillion. The stock price had reached a record high of N850.1 after its listing before its new low of N495.10.

Asset management firm, Norrenberger on Tuesday October 29 listed by introduction its Islamic Fund (NIF) and the Norrenberger Turbo Fund on the Nigerian Exchange Limited (NGX).

Both funds are collective investment schemes (CIS) registered by the Securities and Exchange Commission (SEC). The NIF is designed for investors with a short-to-long term investment horizon who prioritise adherence to Shariah principles.

Norrenberger notes that the fund targets investors seeking returns above conventional Shariah-compliant fixed deposits while maintaining a conservative approach, avoiding the higher risks linked to equity investments.