Capital Hotel, FBNH, others lead NGX’s 13.5b turnover

Transactions in the shares of Capital Hotel Plc, FBN Holdings Plc and Jaiz Bank Plc, last week, lifted the volume of shares traded as a turnover of 1.5 billion shares worth N13.5 billion was recorded in 20,074 deals by investors in the capital market.

The volume of shares traded was, however, higher than a total of 705.6 million units valued at N12.9 billion that changed hands in 22,124 deals on August 5, 2022.

The top three equities accounted for 763.8 million shares worth N5.1 billion in 1,025 deals, contributing 50.55 per cent to the total equity turnover volume.

On the sectoral activity chart, the financial services industry (measured by volume) led the chart with 680.2 million shares valued at N4.7 billion traded in 9,230 deals. The sector contributed 45 per cent to the total equity turnover.

The services industry followed with 499.2 million units worth N3.4 billion in 866 deals. The ICT industry ranked third with a turnover of 113.8 million shares worth N2.246 billion in 2,083 deals.

The NGX all-share index (ASI) and market capitalisation depreciated by 2.09 per cent to close the week at 49,664.07 and N26.787 trillion respectively.

Similarly, all other indices finished lower except NGX Insurance, NGX Consumer Goods and NGX Growth Indices which appreciated by six per cent, three per cent and 1.56 per cent, while the NGX ASeM index closed flat.

Notably, selloffs of MTN Nigeria (-6.9 per cent), BUA cement (-10.0 per cent), Dangote cement (-2.3 per cent) and Stanbic IBTC (-9.7 per cent) stocks led to the weekly loss. Consequently, the MTD loss increased to -1.4 per cent, , while the YTD gain moderated to +16.3 per cent.

On market outlook this week, analysts predicted a gloomy outlook, citing the nation’s macroeconomic challenges, which have continued to impact negatively on businesses and investment.

Specifically, analysts at Cordros Capital said: “The week ahead, we believe investors will focus on the outcome of the bond auction scheduled to hold on Monday (August 15) to gain further clarity on the movement of yields in the FI market.

“As a result, we envisage cautious buying actions from dividend-yield-seeking investors amid intermittent profit-taking activities.

“Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the unimpressive macro environment remains a significant headwind for corporate earnings.”

Vetiva Dealings and Brokerage said: “Market closed the week down as declines in large-cap names like MTNN, BUA cement and Dangote cement dragged the All-Share index down. We expect the market to pick up from Friday’s close amid slight recoveries in some of the week’s losers.”

Further breakdown of last week’s trading showed that a total of 3,091 units of Exchange Traded Products (ETPs) valued at N13.1 million was recorded in 41 deals compared with a total of 16,247 units worth N400, 448.65 transacted in 24 deals during the preceding week.

Also, a total of 80,732 units of bonds valued at N86.2 million were traded in 35 deals compared to 118,689 units valued at N120.9 million transacted last week.

33 equities appreciated during the week, lower than 41 equities in the previous week. Twenty-six depreciated at a price higher than 22 in the previous week, while 97 others remained unchanged.