Banks lose 2.1% in one week as investors stake N29.6 billion
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 2.1 per cent. The downturn was impacted by sell pressure in Ecobank TransNational Incorporated (-7.9 per cent) and Fidelity Bank Plc (-6.5 per cent).
Following the sector last week was the oil & gas index, shedding 0.7 per cent. The losses were occasioned by price depreciation in Eternaoil Plc (-26.7 per cent)
On the other hand, the insurance and consumer goods indices topped the gainers’ chart with 5.9 per cent and 2.3 per cent. The price appreciation was driven by buying interest in Mansard (17.1 per cent), Custodian (9.1 per cent), Dangote Sugar Refinery (25 per cent), and Nigerian Breweries (16.4 per cent).
Following the sectors were the AFR-ICT and industrial goods indices with one per cent and 0.2 per cent. The sectors were buoyed by price appreciation in MTN Nigeria (+1.8 per cent), Betaglass (10 per cent), and Berger (9.5 per cent)
Consequently, bargain hunting in MTNN lifted the NGX All-share index and market capitalisation by 0.22 per cent to close the week at 65,198.08 and N35.48 trillion, pushing the month-to-date and year-to-date returns to 1.6 per cent and 27.2 per cent.
Similarly, all other indices finished higher except NGX Main Board, NGX CG, NGX Banking, NGX AFR Bank Value, NGX MERI Growth, NGX MERI Value and NGX Oil and Gas indices, which depreciated by 0.07 per cent, 0.06 per cent, 2.13 per cent, 1.85 per cent, 2.43 per cent, 0.78 per cent, and 0.68 per cent respectively while the NGX ASeM index closed flat.
Reacting to market performance, analysts predicted a brighter outlook, stating that anticipation of interim dividend declaration would continue to drive positive performance on the bourse.
Analysts at Cordros Capital said: “We believe earnings from the Tier-1 banks in the coming week(s) will support positive sentiments on the bourse, especially given the anticipation of interim dividends. In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.
“Overall, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Vetiva Dealings and Brokerage said: “Despite three sessions of declines last week, the market returned 22bps, supported by the significant rebounds seen across the board. We expect another cautious start in the new week.”
On the activity chart, the financial services industry (measured by volume) led the activity chart with 1.9 billion shares valued at N16.5 billion traded in 17,689 deals; thus contributing 74.6 per cent to the total equity turnover volume.
The conglomerates’ industry followed with 160.2 million units worth N625 million in 1,811 deals. The third place was the Oil and Gas Industry, with a turnover of 152 million shares worth N1.332 billion in 2,403 deals.
Trading in the top three equities namely AIICO Insurance Plc, FCMB Group Plc and Transnational Corporation Plc (measured by volume) accounted for 636.2 million shares worth N1.7 billion in 2,751 deals, contributing 24.71 per cent to the total equities turnover volume.
On the whole, a turnover of 2.6 billion shares worth N29.6 billion was recorded in 37,713 deals by investors on the floor of the Exchange. This volume of shares traded was, however, lower than 2.9 billion units valued at N37.6 billion which were exchanged in 41,547 deals during the preceding week.
Further breakdown of last week’s transactions showed that a total of 27,073 units of Exchange Traded Products (ETPs) valued at N1.3 million were traded in 90 deals compared to 14,270 units valued at N3.2 million transacted in 95 deals on July 28, 2023.
A total of 143,414 units of bonds valued at N146.160 million were traded last week in 26 deals compared with a total of 29,766 units valued at N30.6 million transacted in 31 deals during the preceding week.
Forty-two equities appreciated during the week higher than 39 equities in the previous week. 52 equities depreciated lower than 54 in the previous week, while 61 equities remained unchanged, lower than 62 recorded in the previous week.
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