FBN Holdings, GTCO, others lift NGX turnover by N13.9 billion
Heavy transactions in the shares of FBN Holdings Plc, United Bank for Africa (UBA) Plc and Guaranty Trust Holding Company (GTCO) Plc, last week, lifted the volume of shares traded as a turnover of 1.290 billion shares worth N13.9 billion was recorded in 16,745 deals by investors on the Nigerian Exchange Limited (NGX).
This volume of shares traded was, however, higher than a total of 856.289 million units, valued at N10.752 billion that was exchanged in 15,663 deals during the preceding week.
The top three equities accounted for 626.958 million shares worth N5.766 billion in 2,526 deals, contributing 48.58 per cent to the total equity volume.
On the sectoral activity chart, the financial services industry (measured by volume) led the chart with 978.172 million shares valued at N8.3 billion traded in 8,716 deals.
The sector contributed 75.80 per cent to the total equity turnover volume. The consumer goods industry followed with 62.006 million shares worth N1.2 billion in 2,546 deals.
The conglomerate industry ranked with a turnover of 49.055 million shares worth N126.3 million in 589 deals.
The NGX All-share index which measures the performance of quoted companies and market capitalisation of listed equities appreciated by 0.05 per cent to close the week at 38,962.28 and N20.300 trillion respectively.
Similarly, all other indices finished higher except NGX 30, NGX CG, NGX Banking, NGX Pension, NGX-AFR Bank Value, NGX AFR Div Yield, NGX MERI Value and NGX consumer goods indices which depreciated by 0.04 per cent, 0.36 per cent, 0.43 per cent 0.05 per cent, 0.72 per cent, 0.50 per cent, 0.75 per cent and 0.04 per cent respectively, while the NGX ASeM, NGX Growth and NGX Sovereign Bond Indices closed flat.
Analysts urged investors to take a position in only dividend-paying stocks, amid an unimpressive macro-economic environment, which had remained a significant headwind for corporate earnings.
Specifically, analysts at Cordros Capital said: “We expect savvy investors to take advantage of the moderation in the share prices of bellwether stocks to make a re-entry in the week ahead.
“However, we expect intermittent profit-taking activities to persist as investors search for clues on the direction of yields in the FI market.
“Accordingly, we think the market will exhibit a choppy pattern. Overall, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”
Vetiva Dealings and Brokerage said:” We anticipate a moderate start to begin the new trading week barring any significant cross trades as investors continue to bargain hunt across sectors.”
Afrinvest said: “In the coming week, we expect the momentum on the local bourse to remain elevated on improved investor sentiment.”
Further breakdown of last week’s transactions showed that a total of 9,728 units of Exchange Traded Products (ETPs) valued at 437,821.70 were traded in 18 deals last week, compared with a total of 106,810 units valued at N1.9 million transacted in 21 deals during the preceding week.
Also, 60,929 units of bonds valued at N62.810 million were traded last week in 27 deals higher than a total of 51,261 units worth N52.911 million that changed hands in 26 deals during the preceding week.