The Financial stocks and the consumer goods industry led trading activities at the Nigerian Exchange (NGX) limited last week.
The financial services stock led the activity chart with 634 million shares valued at N6.4 billion traded in 8,540 deals. Thus, it contributed 67 per cent to the total equity turnover and value.
The consumer goods industry followed with 78 million shares worth N2.2 billion in 2, 993 deals, while the conglomerates ranked third with a turnover of 59 million shares worth N10 million in 788 deals.
Trading in the top three equities namely: Guaranty Trust Holding Company Plc, Universal Insurance Plc and Transnational Corporation Plc (measured by volume) accounted for 269.2 million shares worth N2.9 billion in 1,845 deals, contributing 28.5 per cent to the total equity turnover volume.
A turnover of 944 million shares worth N22 billion was recorded in 18,615 deals by investors on the floor of the Exchange, in contrast to a total of 3.8 billion units valued at N27 billion that changed hands in 20,333 deals during the preceding week.
On the price movement chart, the bourse ended the week positively, representing two consecutive weeks of gains, as the All-Share Index and market capitalisation appreciated by 0.2 per cent to close the week at 54,327.3 points and N29.591 trillion respectively.
All other indices finished lower except NGX 30, NGX Premium, NGX AFR Div Yield, NGX Oil and Gas, NGX Lotu II, and NGX Industrial Goods indices which appreciated by 0.34 per cent, 1.04 per cent, 0.5 per cent, 0.63 per cent, 0.51 per cent and 0.65 per cent while the NGX ASeM and NGX Sovereign Bond indices closed flat.
Analysts attributed the gain to investors’ sustained interest in MTN Nigeria (MTNN) (+1.7 per cent) and Dangote Cement (+1.2 per cent), even as the Month To Date (MTD) and Year To Date (YTD) returns increased to +2.0.per cent and +6 per cent, respectively.
Cordros Capital said: “In the subsequent weeks, we expect the NGX to be flooded with corporate earnings as more companies publish 2022FY numbers, which will be accompanied by dividend declarations.
“We believe this should provide a catalyst for buying activities even as risk-averse investors are likely to remain cautious due to medium-term expectations of an uptick in FI yields.
“Overall, we advise investors to seek trading opportunities in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”
Analysts of Vetiva Dealings and Brokerage said: “Despite three red closes this week, the market recorded 21bps w/w gain, largely due to the gains posted in MTNN and Dangote Cement as the NGX30 index also gained 34bps.
“For next week, we still anticipate mixed trading sessions, as investors remain cautious, amid slight profit-taking actions.”
Furthermore, a total of 16,674 units of Exchange Traded Products (ETPs) valued at N11.9 million were traded in 44 deals compared to a total of one million units valued at N11.7 million transacted in 62 deals during the preceding week.
Twenty-four equities appreciated during the week, lower than 55 equities in the previous week. Forty-five equities depreciated, higher than 27 in the previous week, while 88 equities remained unchanged, higher than 75 equities recorded in the previous week.
