FBN, Sterling Bank, others lift NGX volume by N20.9b
Heavy transactions in the shares of some companies, especially FBN Holdings (FBNH), Sterling Bank, and UACN Plc last week, lifted the volume of shares traded, as a turnover of 1.471 billion shares worth N20.9 billion were recorded in 20,410 deals by investors on the floor of the exchange.
A breakdown of activities on the Nigerian Exchange Limited (NGX) last week, indicated that the volume of shares traded was however higher than a total of 1.428 billion units valued at N12.373 billion exchanged in 23,987 deals during the week ended November 5, 2021.
Trading in the top three equities (measured by volume) accounted for 519.011 million shares worth N4.1 billion in 1,787 deals, contributing 35.28 per cent to the total equity turnover volume and value.
On the sectoral performance, the financial services industry (measured by volume) led the activity chart with 996.555 million shares valued at N10.3 billion traded in 10,565 deals; thus contributing 67.74 per cent to the total equity turnover volume and value respectively.
The conglomerate industry followed with 203.251 million shares worth N1.2 billion in 834 deals.
The consumer goods industry ranked third with a turnover of 105.410 million shares worth N3.2 billion in 2,789 deals.
On the price movement chart, despite recording losses on three of the five trading sessions, gains in telco heavyweights ensured the market closed in the green territory.
Specifically, strong buying interest in Airtel Africa and MTNN lifted NGX indices due to the euphoria that greeted the announcement of Payment Service Bank (PSB) license approval by the CBN.
Consequently, the NGX All-share index and market capitalisation appreciated by 2.95 per cent to close the week at 43,253.01 and N22.572 trillion respectively.
Similarly, all other indices finished higher except NGX banking, NGX Insurance, NGX-AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth, NGX oil/gas and NGX Industrial Goods indices which depreciated by 1.13 per cent, 2.25 per cent, 1.83 per vent, 0.44.per cent, 0.80 per cent, 0.69 per cent and 0.01 per cent respectively, while the NGX ASeM, NGX Growth and NGX Sovereign bond indices closed flat.
Predicting market performance this week, analysts at Cordros Capital said: “In the week ahead, we expect investors to trade cautiously whilst taking positions in stocks with attractive dividend yields ahead of 2021FY dividend declarations.
“In addition, we believe the outcome of the bond auction scheduled to hold during the week will also shape market sentiments. “Notwithstanding, 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: “The market traded mixed this week. However, in comparison to the prior week, turnover improved by 69 per cent due to increased activity in some of the large/mid-cap names like MTNN, AIRTEL and Flour Mill with overall sentiment still largely bearish. We anticipate this tepid sentiment to persist as there are no major catalysts to spur activity.”
A total of 23,297 units of Exchange Traded Funds (ETPs) valued at N792,386.34 were traded last week in 34 deals compared with a total of 252,857 units valued at N3.8million was transacted last week in 31 deals.
Also, 56,655 units of bonds, valued at N60.8 million were traded last week in 26 deals compared with a total of 32,626 units valued at N33.332 million transacted last week in 16 deals.
27 equities appreciated last week, higher than 23 equities recorded in the preceding week while 36 equities depreciated, lower than Forty-three 43 equities in the previous week.