Consumer goods dominate turnover with N106b deal

For the first time in several years, the consumer goods sub-sector displaced the financial sector at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX) with 1.3 billion shares valued at N106 billion traded in 4,652 deals, contributing 46.7 per cent to the total equity turnover volume.

The financial services industry followed with 926.6 million units worth N14.9 billion in 19,174 deals. The third place was the oil and gas industry, with a turnover of 244.6 million shares worth N7.2 billion in 4,221 deals.

Trading in the top three equities namely Guinness Nigeria Plc, United Bank for Africa Plc and Japaul Gold and Ventures Plc (measured by volume) accounted for 1.7 billion shares worth N110.8 billion in 5,004 deals, contributing 59.5 per cent to the total equity turnover volume.

The market opened for four trading days last week as the Federal government declared Tuesday, October 1, 2024, as a public holiday to commemorate the Independence Day Celebration.

Consequently, a turnover of 2.9 billion shares worth N132.8 billion was recorded in 39,867 deals by investors on the floor of the exchange, in contrast to 3.32 billion units valued at N45.9 billion that were exchanged in 49,243 deals during the preceding week.

On the price movement chart, selloffs in Dangote Cement (-10 per cent), Basement (-3.4 per cent), and FBN Holdings (-11.2 per cent) drove the weekly loss as the NGX all-share index and market capitalisation depreciated by 0.9 per cent to close the week at 97,520.54 and N56.039 trillion respectively.

Similarly, all other indices finished lower except NGX CG, NGX Pension, NGX Insurance, NGX AFR Bank Value, NGX MERI Growth, NGX MERI Value, NGX Consumer Goods, NGX Oil and Gas and NGX Growth which appreciated 1.21 per cent, 0.61 per cent, 3.81 per cent, 2.69 per cent, 0.23 per cent, 10.87 per cent, 0.34 per cent, 7.29 per cent and 5.43 per cent respectively while the NGX ASeM and NGX Sovereign Bond indices closed flat.

Analysts at Cowry Asset Management said: “In the coming week, we anticipate a positive outing for the local bourse as we see the local bourse showing signs of recovery heading into the final quarter of the year, while the market awaits the nine months’ performance scorecards of some of the early filers such as Geregu, Dangote Cement, Dangote Sugar, MTN Nigeria amongst others. Nevertheless, we will continue to advise investors to focus on fundamentally sound stocks.”

Cordros Capital said: “In the near term, we expect investors to maintain a cautious trading approach, with sentiments likely skewed towards the bearish side. “As such, we expect intermittent profit-taking to persist. However, this could be balanced by bargain-hunting activities as investors prepare for the upcoming Q3-24 earnings season.”The chief research officer of Investdata Consulting Limited, Ambrose Omordion said: “We expect mixed sentiment to continue on profit taking and portfolio rebalancing ahead of the Q3 earnings reporting session. Also, sector rotation continues in the market, with investors taking advantage of pullbacks to buy into value.

“This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”

A total of 27,532 units of Exchange Traded Products (ETPs), valued at N4.9 million were traded last week in 90 deals compared to a total of 92,630 units valued at N42.3 million transacted last week in 135 deals.

In addition, a total of 135,910 units of bonds, valued at N135.8 million were traded last week in 18 deals compared with a total of 268,099 units valued at N269.5 million transacted in 32 deals during the preceding week.

45 equities appreciated during the week, the same as 45 equities in the previous week. Also, 33 equities depreciated the same as 33 in the previous week, while 73 equities remained unchanged, the same as 73 recorded in the previous week.