The banking index led the loser’s chart at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX) with14.3 per cent, buoyed by price depreciation in FCMB (-17.3 per cent) and UBA (-9.5 per cent).
Following the sector, last week, was the insurance and consumer goods indices, shedding 11.5 per cent and 2.3 per cent respectively. The losses were occasioned by selloffs in CHI Plc (-18.6 per cent), Lasaco (-14.8 per cent), Honeywell flourmills (-11.8 per cent) and International Breweries (-11.5 per cent).
On the other hand, the industrial goods and oil and gas indices gained 9.0 per cent and 1.4 per cent w/w respectively driven by buying interest in Dangote cement (+11.6 per cent), BUA Cement (+8.7 per cent), MRS oil (+10.0 per cent) and Conoil (+10.0 per cent)
Consequently, the NGX All-Share index and market capitalisation depreciated by 0.75 per cent to close the week at 62,569.73 and N34.07 trillion respectively.
Similarly, all other indices finished lower except NGX Oil and Gas, NGX Lotus ll and NGX industrial goods Indices which appreciated by 1.43 per cent, 0.72 per cent and 9.01 per cent respectively while the NGX ASeM and NGX Sovereign Bond Indices closed flat.
Reacting to market performance, analysts predict a gloomy outlook, citing the nation’s weak macroeconomic situation. However, they urged investors to patronise blue chips ahead of the half-year earning season and interim dividend declaration.
Analysts at Codros Securities said: “With the half-year earnings season on the horizon, we believe investors will look for clues on the sustainability of the decent corporate earnings released for Q1-23.
“However, we expect mixed market performance in the week ahead as bargain hunting on dividend-paying stocks will be matched by intermittent profit-taking activities.
“Overall, we reiterate the need for taking positions in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.
Investdata Consulting said: “We expect mixed sentiments on cautious trading and possible positive catalyst and portfolio realignments to support a rebound, as the earnings season has kicked off.
“This is expected to be supported by more policy pronouncements and the appointments of ministers to offer investment direction, even as Q2 earnings reporting season draws closer to confirm the real state.
“Despite the mixed volume pattern witnessed recent days, it is time to go shopping for undervalued stocks, sector rotation, go for defensive stocks and the next insider playing opportunity.”
Vetiva Dealings and Brokerage said: “Given the profit-taking activities that ended the week, we expect mixed trading sessions next week, as most investors stay on the sidelines in anticipation of H1’23 results of these companies.”
On the activity chart, the financial services industry (measured by volume) led the activity chart with 3.4 billion shares valued at N38 billion traded in 28,633 deals; thus contributing 66.6 per cent to the total equity turnover.
The conglomerates industry followed with 451.4 million shares worth N2.2 billion in 3,147 deals. The third place was the ICT industry, with a turnover of 332.7 million shares worth N5.6 billion in 4,207 deals.
Trading in the top three equities namely United Bank for Africa, Transnational Corporation Plc and FBN Holding Plc (measured by volume) accounted for 1.2 billion shares worth N15.5 billion in 8,260 deals, contributing 23.3 per cent to the total equity turnover volume.
On the whole, a turnover of 5.2 billion shares worth N63.4 billion was recorded in 57,234 deals by investors on the floor of the exchange, in contrast to a total of 9.8 billion shares valued at N145.4 billion that changed hands in 54,478 deals during the preceding.
A total of 3.562 million units of Exchange Traded Products (ETPs) valued at N96.3 million were traded in 110 deals compared to 6.592 million units valued at N49.7 million that was transacted last week in 119 deals.
Also, 20,386 units of bonds, valued at N21.9 million were traded in 14 deals last week, compared to a total of 45,738 units valued at N46.148 million transacted in 30 deals during the preceding week.
