Consumer index loses 1.25% in one week as investors stake N31.5b in equities

The consumer index led the loser’s chart at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX) with 1.25 per cent, buoyed by depreciation in Guinness, International Breweries and Honeywell Flourmills.

The industrial goods index followed with 0.13 per cent. The losses were occasioned by a decline in Trippleg, Tantalizers and UPDC Plc.

On the other hand, the oil and gas index led the gainers’ chart with 1.6 per cent, following price appreciation in Seplat Plc while the banking and insurance indices followed with 0.5 per cent and 0.08 per cent weekly gains, triggered by a rally in FBN Holdings, Lasaco and Prestige Assurance.

Consequently, a turnover of 2.9 billion shares worth N31.5 billion was recorded in 42,482 deals by investors on the floor of the exchange, in contrast to a total of 2.9 billion units valued at N132.8 billion that was exchanged in 39,867 deals on October 4.

The financial services industry (measured by volume) led the activity chart with 1.4 billion shares valued at N17.9 billion traded in 19,613 deals, thus contributing 50 per cent to the total equity turnover volume.

The services industry followed with 1.1 billion units worth N775.3 million in 2,675 deals. Third place was the agriculture industry, with a turnover of 93.9 million shares worth N1.3 billion in 2,517 deals.

Trading in the top three equities – Tantalizer Plc, Coronation Insurance Plc and Fidelity Bank Plc – (measured by volume) accounted for 1.6 billion shares worth N3.9 billion in 1,814 deals, contributing 54.8 to the total equity turnover.

On the price movement chart, the domestic stock market traded with mixed sentiments as buying interest in Seplat (+5.1 per cent), Fidelity Bank (+13.1 per cent), FBN Holdings (+4 per cent), and Julius Berger (+9.3 per cent) offset sell pressures on Oando (-7.3 per cent), UBA (-3.1 per cent), Stanbic (-1.6 per cent) and WAPCO (-2 per cent).

As a result, the all-share index and market capitalisation appreciated by 0.09 per cent to close the week at 97,606.63 and N56.088 trillion respectively, resulting in month-to-date (MTD) and year-to-date (YTD) returns settling at -1 per cent and +30.5 per cent.

Analysts at Cordros Capital said: “Looking ahead, we expect investors to maintain a cautious trading approach, with sentiments likely skewed towards the bearish side as investors monitor activities in the fixed-income market.

“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.”

Cowry Asset Management Research said: “The modest gains recorded in this trading week reflect investor confidence slowly returning to the market, with expectations of further rebounds supported by anticipated earnings releases and the impact of government reforms on economic growth.

“Thus, we anticipate the current trend of mild gains to continue on the local bourse, buoyed by the release of the Q3 earnings report by majorly the early filers. Meanwhile, we continue to advise investors to focus on fundamentally sound stocks.”

A total of 25,375 units of Exchange Traded Products (ETPs) valued at N5.6 million were traded in 81 deals compared with a total of 27,532 units valued at N4.9 million transacted in 90 deals during the preceding week.