The banking index led the losers’ chart at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX) with 6.51 per cent occasioned by price in United Bank for Africa and GTCO.

The oil and gas and Insurance index trailed on the losers’ chart with 6.49 per cent and 3.98 per cent respectively. The losses were driven by price depreciation in Seplat and NEM insurance.

The consumer goods index also declined by 1.29 per cent with PZ Cussons, Presco and Dangote Sugar leading the fall. On the other hand, the industrial index appreciated marginally by 0.01 per cent, buoyed by price appreciation in Julius Berger, UPDC and Cutix.

Consequently, the all-share index and market capitalisation depreciated by 0.1 per cent to close at 98,125.73 and N55.508 trillion respectively. On the activity chart, a turnover of 1.7 billion shares worth N42.7 billion was recorded in 38,123 deals by investors on the floor of the exchange, in contrast to a total of 2.2 billion units valued at N50.7 billion that changed hands in 45,277 deals on May 10, 2024.

The financial services industry (measured by volume) led the activity chart with 979.479 million shares valued at N16.6 billion traded in 20,708 deals, thus contributing 59.3 per cent to the total equity turnover volume.

The conglomerates industry followed with 239.825 million shares worth N2.9 billion in 2,178 deals. The third place was the consumer goods industry, with a turnover of 148.7 million shares worth N3.5 billion in 4,757 deals.

Trading in the top three equities namely Custodian Investment Plc, Guaranty Trust Holding Company Plc and Access Holdings Plc (measured by volume) accounted for 500.3 million shares worth N11.768 billion in 6,551 deals, contributing 30.3 to the total equity turnover.

A total of 4,103 units of Exchange Traded Products (ETPs) valued at N2.4 million were traded in 110 deals compared to a total of 35,016 units valued at N3.2 million transacted in 99 deals during the preceding week.

Analysts at Cordros Capital said: “In the week ahead, we believe investors will focus on the outcome of the MPC meeting scheduled for next week (this week) to gain further clarity on yield movements in the fixed-income market. Consequently, we anticipate cautious trading from domestic investors in the short term.”

Cowry Asset Management said: “Looking ahead, the market is expected to maintain a weak sentiment as investors continue to digest the latest economic data from the statistics bureau. The anticipated outcome of the upcoming MPC meeting, likely to result in a modest 100 basis points rate hike, could further dampen market sentiment.

“Despite the current market weakness and mixed sector performance, the oversold conditions and mixed technical indicators suggest potential buying opportunities for value investors aiming to capitalise on low prices and valuations. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.”

Vetiva Dealings and Brokerage said: “The 11bps w/w loss further confirms that the market will continue to trade range-bound as investors pursue safety in the fixed income space. That said, we expect the market to trade in a similar pattern on Monday, as investors maintain their risk-off sentiment towards the equity market.”

The Chief Research Officer of Investdata Consulting, Ambrose Omordion said: “We expect mixed sentiments to continue as players continue to digest April CPI, low price attraction, dividend investing and reactions to Q1 numbers. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.

“Investors and traders are expected to take advantage of the low prices and valuation to buy into value, given the oversold state of the market. They should target companies with consistent track records of dividend payment, strong fundamentals and growth prospects that will support further growth in earnings.”