FBN Holdings, GTCO, ETI lift NGX turnover by 64.6 per cent
FBN Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc and Ecobank Transnational Incorporated (ETI) lifted the volume of shares traded at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX).
Trading in the shares of the banks accounted for 1.834 billion units worth N23.372 billion in 5,981 deals, contributing 64.61 per cent to the total turnover volume.
In the sectoral analysis, the financial services industry (measured by volume) led the activity chart with 2.428 billion shares valued at N26.4 billion traded in 13,884 deals; thus contributing 85.56 per cent to the total equity turnover.
The consumer goods followed with 170.407 million shares worth N1.7 billion in 3,350 deals. The conglomerate industry ranked third with a turnover of 68.996 million shares worth N133.4 million in 625 deals.
A total turnover of 2.838 billion shares worth N31.7 billion was recorded in 23,355 deals by investors on the floor of the exchange last week.
This volume of shares traded was however higher than a total of 2.179 billion units worth N21.9 billion that changed hands during the preceding week in 22,438 deals.
Also, last week, the local bourse sustained gains on all trading days as the All-share index and market capitalisation appreciated by 1.39 per cent and 1.54 per cent to close the week at 41,438.15 and N21.625 trillion respectively.
Similarly, all other indices finished higher except NGX ASeM Index which closed flat.
In addition, 19,603 units of bonds valued at N21.192 million were traded this week in 19 deals compared with a total of 62,005 units valued at N65.842 million transacted last week in 39 deals.
Predicting market direction for the week, analysts expressed optimism that the rally would be sustained as many stocks are trading at a discount, a situation expected to attract more funds into the equities space, given the dividend yield capable of serving as a hedge against inflation.
Specifically, Cordros Capital said: “In the coming week, we expect investors’ sentiment will be shaped by Q3 earnings releases and the outcome of the bond auction scheduled to hold on Wednesday as they seek clarity on the movement of yields in the Fixed Income market.
“As a result, we envisage a mixed trading pattern due to bargain hunting activities in dividend-paying stocks amid intermittent profit-taking activities.
“Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings. ”
Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion said: “We expect a mixed trend being the last trading session for the week as traders book profit to reposition for Q3 earnings season and year-end, just as candlestick formation supports an uptrend on a high volume.
“It is equally noteworthy that any pullback, for now, is for accumulation ahead of economic data and earnings reporting season.
On the price movement chart, 45 equities appreciated during the week, higher than 42 equities in the previous week. 15 equities depreciated, lower than 26 equities in the previous week while 95 equities remained unchanged higher than 87 equities recorded in the previous week.