The Financial sector led the trading activities at the Nigerian Exchange (NGX) limited last week with two banks driving the sector’s turnover by 85%.
Specifically, trading in the top three equities namely Access Bank, Sterling Bank Plc and Transcorp accounted for 577.512 million shares worth N2.761 billion in 1, 132 deals, contributing 52.44 per cent to the total equity turnover volume.
Following the banking sector in volume terms last week was the conglomerate industry with 96.9 million shares worth N109.6 million in 425 deals. The oil and gas industry ranked third with a turnover of 40.9 million shares worth N367.1 million in 1,065 deals.
On the whole, a turnover of 1.1 billion shares worth N11.7 billion was exchanged in 15,697 deals by investors on the floor of the exchange, in contrast to a total of 1.4 billion units valued at N15.5 billion that changed hands in 19,025 deals on November 4, 2022.
Analysts at Cordros Capital said: “We expect bearish sentiments to remain predominant next week in the absence of any positive triggers to turn the tide for Nigerian equities.
“Nonetheless, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Analysts attributed the lull to the recent CBN rate hikes, as well as uncertainties surrounding the 2023 general election, insecurity and exchange market problem among others.
The Chief Research Officer of Investdata Consulting, Ambrose Omordion, said: “Many players, including institutional investors, are holding cash to confirm market direction, especially as the financial market resets in 2023 and beyond is underway to create wealth for discerning investors.
“Also, the current market correction and pullbacks offer good entry opportunities to investors. Most stocks have touched their 52-week lows and some tending toward their year-to-date lows, creating more entry opportunities for discerning investors.
“The next outcome of the MPC meeting could trigger news-based market movements. We expect mixed sentiments to continue on portfolio repositioning and bargain hunting during expected macroeconomic data and election uncertainty,” he said.
Vetiva Dealings and Brokerage said:” Market sentiment was positive today with only 7 counters closing the day in the red, amid reduced activity level. However, we are likely to see a sideways market trend at the start of trading next week.”
Consequently, the All-Share Index and market capitalisation depreciated by 0.7 per cent to close the week at 43,968.75 and N23.949 trillion respectively.
Similarly, all other indices finished lower except NGX Banking, NGX-AFR Bank Value, and NGX AFR Div. Yield and NGX MERI Value, appreciated by 0.17 per cent, 0.38 per cent, 1.1 per cent and 0.2 per cent respectively, while the NGX ASeM, NGX Growth and NGX Sovereign Bond indices closed flat.
The negative sentiments were driven by sell-offs in Guinness, (-10 per cent), Flourmills (-9.9 per cent), Nigerian Breweries (-6.3 per cent), MTN Nigeria (-2 per cent) and Dangote cement (-0.8 per cent).
Further breakdown of last week’s transactions showed that a total of 4,379 units of Exchange Traded Products (ETPs) valued at N622, 934.2 were traded in 33 deals compared with a total of 4,577 units valued at N531, 565.05 transacted in 28 deals during the preceding week.
Also, 23,819 units of bonds valued at N24.6 million were traded in 16 deals compared to a total of 121,712 units valued at N119.22 million transacted last week in 16 deals.
