Financial sector dominates trading with 64 per cent volume
The financial services industry (measured by volume) dominated in volume terms on the equities sector of the Nigerian Stock Exchange (NGX) last week with 1.7 billion shares valued at N12.5 billion.
The sector led the activity chart last week, thus contributing 64 per cent to total equities turnover volume and value respectively.
Trading in the top three equities namely FBN Holdings Plc, Transnational Corporation Plc and United Bank for Africa Plc (measured by volume) accounted for 1.1 billion shares worth N8.323 billion in 2,906 deals, contributing 62.1 per cent to the total equity turnover volume.
Following the financial sector, last week was the conglomerate industry with 419 million shares worth N607.7 million in 1,095 deals. The consumer goods industry, with a turnover of 69.7 million shares worth N2.8 billion in 3,158 deals.
In all, a turnover of 1.8 billion shares worth N19.5 billion was recorded in 21,723 deals by investors on the floor of the exchange.
This volume of shares traded is however lower than a total of 28.7 billion units valued at N209 billion that exchanged hands last week in 23,688 deals during the week ended June 3, 2022.
On market outlook, Cordros Capital said: “We expect alpha-seeking investors to continue to seek trading opportunities in companies that delivered impressive earnings during the Q1-22 earnings season despite the expectation of an uptick in yields in the FI market.
“However, we think the absence of a near-term catalyst will likely skew overall market sentiments to the negative side, particularly as the political space gets heated up. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”
Investdata Consulting Limited said: “We expect profit-taking after the recent bargain hunting that pushed the market up amid the continued portfolio repositioning ahead of economic data, and the interim dividend season, while audited accounts of March year-end companies are expected to hit the market.
“We also note the flow of funds into the fixed income segment on the rate hike by the CBN, as sector rotation persists and players digest the macro-economic data and Q1 corporate earnings release.”
A total of 2,110 units of Exchange Traded Products (ETPs) valued at N168.1 were traded this week in 21 deals compared with a total of 43,648 units valued at N987,351.25 transacted last week in 24 deals.
Also, 126,082 units valued at N129 million were traded this week in 14 deals compared with a total of 20,402 units valued at N21.440 million transacted last week’s 10 deals.
A total of 126,082 units valued at N129.123 million were traded this week in 14 deals compared with a total of 20,402 units valued at N21.440 million transacted last week’s 10 deals.
The NGX All-share index and market capitalisation appreciated by 0.7 per cent to close the week at 53,201.38 and N28.681 trillion respectively.
All other indices finished lower except the NGX 30, NGX CG, NGX Premium, NGX MERI Value, NGX Oil/Gas, NGX Lotus II and NGX Industrial Goods index which appreciated at 0.84 per cent, 0.01per cent, 1.42 per cent ,0.32 per cent, 0.68 per cent, 1.62 per cent and 0.25.per cent while, the NGX Asem index closed flat.
29 equities appreciated during the week, lower than 36 equities in the previous week. 36 equities depreciated, lower than 45 equities in the previous week.
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