Banks dominate financial sector’s contribution to turnover

Three banks’ stocks – Sterling Bank Plc, Fidelity Bank Plc and Access Holdings Plc – dominated activities in the financial service sector of the Nigerian Exchange Limited (NGX) last week.

With the development, the financial sector maintained its control in volume terms with 508.5 million shares valued at N6.2 billion traded in 6,8771 deals, contributing 67 per cent to the total equities turnover.

Specifically, trading in the top three equities—Sterling , Fidelity and Access-Holdings, accounted for 249.6 million shares worth N3.9 billion in 1,984 deals, contributing 33.2 per cent to the total equities’ turnover.

Following the banking sector in volume terms, last week, was the consumer goods industry with 86.3 million shares worth N4.8 billion in 2,562 deals.

The industrial goods industry ranked third with a turnover of 34.3 million shares worth N3.6 billion in 1,305 deals.

On the whole, a total turnover of 751.9 million shares worth N20.5 billion was recorded in 15,822 deals by investors on the floor of the exchange, in contrast to a total of 944.3 million units valued at N22.7 billion that changed hands in 18,615 deals during the preceding week.

On the price movement chart, the market closed the week negative for the first time in seven weeks following sell pressure on Airtel Africa (-6.0.per cent), Fidelity (-14.7 per cent), and Zenith (-0.8 per cent).

Consequently, the NGX All-share index and market capitalisation depreciated by 0.96 per cent and 0.95 per cent to close the week at 53,804.46 points and N29.31 trillion respectively.

Similarly, all other indices finished lower except NGX Premium, NGX Insurance, NGX MERI Growth, NGX Consumer Goods, NGX Oil and Gas, NGX Industrial Goods and NGX Growth indices which appreciated by 0.54 per cent, 1.18 per cent, 0.44 per cent, 0.67 per cent, 0.91 per cent, 0.06 per cent and 7.15 per cent respectively while the NGX ASeM and NGX Sovereign Bond indices closed flat.

Analysts at Cordros Capital said: “In the short to medium term, we expect domestic investors to continue to dominate the market, although election uncertainties and prospects for higher FI yields may constrain buying activities.

“Also, FPIs, who have exhibited a lacklustre interest in domestic equities, are likely to remain on the sidelines due to upcoming elections, sustained FX liquidity challenges, and tightening global financing conditions.”

Chief Research Officer of Investdata Consulting Limited, said: “We expect mixed and positive sentiments to continue as market players digest January CPI data amid corporate earnings expectations, portfolio rebalancing, falling rates and anxiety over the election uncertainty.

“Any pullback at this point may add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”

Further breakdown of last week’s transactions showed that a total of 2,895 units valued at N452,808.58 were exchanged in 29 deals compared with a total of 16,674 units valued at N11.9 million transacted last week in 44 deals.

A total of 24,298 units valued at N25.4 million were traded in 12 deals compared with 45,882 units valued at N46.200 million transacted last week in 22 deals. Thirty-six equities appreciated during the week higher than 24 equities in the previous week.

Twenty-seven equities depreciated lower than 45 in the previous week, while 94 equities remained unchanged, higher than 88 equities recorded in the previous week.