Financial stocks contribute 75.9% to transactions volume

The financial services industry (measured by volume) dominated in volume terms at the end of last week’s transactions with 859.6 million shares valued at N20.6 billion in 12,297 deals, contributing 75.9 per cent to the total equity turnover.

The conglomerate industry followed with 107.9 million units worth N1.5 billion in 1,346 deals. The consumer goods industry ranked third with a turnover of 51.443 million shares worth N1.9 billion in 2,658 deals.

Specifically, trading in the top three equities namely United Bank for Africa Plc, Zenith Bank Plc and Abbey Mortgage Bank Plc (measured by volume) accounted for 447 billion shares worth N10.7 billion in 3,513 deals, contributing 39.5 per cent to the total equity turnover.

A total turnover of 1.1 billion shares worth N28.7 billion was recorded in 21,921 deals by investors on the floor of the exchange, down from a total of 3.7 billion units valued at N57.9 that was exchanged in 40,726 deals on April 5, 2014.

On the price movement chart, the all-share index and market capitalisation depreciated by 1.09 per cent and 1.08 per cent to close the week at 102,314.56 and N57.865 trillion, occasioned by sell pressure in tier one banks, resulting in month-to-date and year-to-date returns of -2.1 per cent and +36.8 per cent.

Analysts at Cordros Capital anticipated a gloomy outlook as investors continued to react unfavorably to the potential dilution stemming from the CBN’s recapitalisation initiative.

Vetiva Dealing and Brokerage said: “ASI lost 71bps on Friday as investors continue to sell down the banks. Given this week’s bearish performance, we are likely to see moderate losses in that sector, as the market opens the week on a cautious note.”

A total of 64,300 units of exchange-traded products (ETPs), valued at N3.204 million were traded this week in 48 deals compared with a total of 28,431 units valued at N8.264 million transacted last week in 124 deals.

Meanwhile, the foreign exchange (FX) spot and derivatives markets turnover for the week ending on April 12, 2024, was $473 million, a decrease of 48.5 per cent ($445.15 million) from $918.1 million reported for the week ending April 5, 2024.

FMDQ Securities Exchange said the week-on-week (WoW) decrease in the total turnover was driven by fewer business days (due to the three-day public holiday) during the week-ended April 12, 2024, resulting in the 48.6 per cent ($439.07 million) and 40.5 per cent ($6.08 million) decreases in FX spot and FX derivatives turnover, respectively.