The financial services industry dominated in volume terms at the end of last week’s transactions on the floor of the Nigerian Exchange Limited (NGX).

It led the activity chart with 1.936 billion shares valued at N27.7 billion traded in 20,839 deals.
Thus, it contributed 67.84 per cent to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 328.6 million shares worth N2 billion in 3,252 deals.
The conglomerates’ industry ranked third with a turnover of 156.7 million shares worth N692 million in 2,139 deals.

Trading in the top three equities namely FBN Holding Plc, Japaul Gold & Ventures Plc and
United Bank for Africa Plc (measured by volume) accounted for 988 million shares worth N13.278 billion in 5,887 deals, contributing 34.62 per cent to the total equity turnover volume.

On the whole, a turnover of 2.9 billion shares worth N37.6 billion was recorded in 41,547 deals by investors on the floor of the Exchange.

This volume of shares traded was however lower than 4.2 billion units valued at N99 billion that changed hands in 41,446 deals on July 21, 2023.

Further breakdown of last week’s transactions showed that a total of 14,270 units of Exchange Traded Products (ETP) valued at N3.3 million were traded in 95 deals compared with 17,963 units valued at N1.688 million transacted last week in 66 deals.

Also, 29,766 units of bonds valued at N30.6 million were traded in 31 deals compared to a total of 150,193 units valued at N158 million transacted last week in 23 deals.

On the price movement chart, the domestic bourse closed in the green territory despite pressure from profit-taking activities during the week.
The all-share index and market capitalisation appreciated by 0.02 per cent to close the week at 65,056.39 and N35.403 trillion respectively.

All other indices finished higher except NGX Main Board, NGX CG, NGX Banking, NGX Insurance, NGX AFR. Bank Value, NGX AFR. Div. Yield, NGX MERI Value, NGX Consumer Goods and NGX Industrial Goods Indices which depreciated by 0.16 per cent, 0.9 per cent, 2.21 per cent, 1.6 per cent, 2.20 per cent, 1.78 per cent, 0.65 per cent, 2.36 per cent and 0.31 per cent respectively while the NGX ASeM and NGX Sovereign Bond Indices closed flat.

Precisely, bargain hunting in Seplat (+21.0 per cent) and Stanbic IBTC (+10.9 per cent) amid sell-offs of NB (-19.0 per cent) and FBNH (-6.6 per cent) stocks drove the weekly gain. Based on the preceding, the month-to-date and year-to-date returns advanced to +6.7 per cent and 26.9 per cent, respectively.

Analysts at Cordros Capital said: “In the coming week, we expect a flurry of earnings releases on NGX’s floor as more companies publish their half-year numbers. Against the preceding, we think positive earnings surprises and possible interim dividend declarations from companies would spur increased bargain-hunting activities on the bourse.

“Nevertheless, we do not rule out the possibility of profit-taking activities on tickers that have experienced substantial appreciation. In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.”

Investdata Consulting Limited said: “The expected release of more quarterly earnings reports will drive increased volatility, especially rotation and portfolio reshuffling in value-oriented sectors. This is against the backdrop of reform policies which are driving hyperinflationary pressure in the face of an already heated economy. “There are also headwinds ranging from rising inflation mostly driven by the subsidy removal from petrol, exchange rate volatility, a high-interest rate regime and insecurity, among others.

“It, however, provides better opportunities for investors to hedge against inflation even when fixed-income market yields look attractive and remain mixed in the face of high inflation. Also, investors should take advantage of price rallies to take profit, while also looking at the trends and events across the globe and domestically. There is also the hope for more policy pronouncements and appointments that would offer investment direction.”

Thirty-nine equities appreciated during the week lower than 73 equities in the previous week while 54 equities depreciated in a price higher than 19 in the previous week, while 62 equities remained unchanged, lower than 64 recorded in the previous week.