Financial stocks lift NGX turnover by 67.1 per cent

At the end of last week’s transactions, the financial services industry (measured by volume) led the activity chart with 1.120 billion shares valued at N10.9 billion traded in 13,514 deals; thus, contributing 67.13 per cent to the total equities turnover.

The conglomerate industry followed with 242.945 million shares worth N395.2 million in 1,418 deals.

The consumer goods industry ranked third with a turnover of 80.368 million shares worth N1.95 billion in 3,876 deals.

Specifically, trading in the top three equities namely: Transnational Corporation of Nigeria Plc (Transcorp), United Capital Plc and Zenith Bank Plc (measured by volume) accounted for 491.673 million shares worth N5.411 billion in 4,277 deals, contributing 29.48 per cent and 27.78 per cent to the total equity turnover volume and value respectively.

Consequently, a total turnover of 1.7 billion shares worth N19.5 billion was recorded in 25,979 deals by investors on the floor of the exchange.

This volume of shares traded was, however, lower than a total of 1.713 billion units valued at N30.8 billion that was exchanged in 24,767 deals during the preceding week.

Also, a total of 1,622 units of Exchange Traded Products, valued at N775,980.88, were traded in 27 deals compared to a total of 10,633 units valued at N1.181 million transacted in 27 deals.

Similarly, a total of 67,646 units of bonds, valued at N76.346 million were traded in 11 deals compared with a total of 40,892 units valued at N44.706 million transacted in 22 deals during the preceding week.

On the price movement chart, positive sentiments returned to the local bourse last week as investors took advantage of the moderation in share prices last week to make re-entries into companies with attractive dividend yields.

Accordingly, the All-Share Index and market capitalisation appreciated by 0.40 per cent to close the week at 47,328.42 and N25.507 trillion respectively.

Notably, bargain hunting in SEPLAT (+7.5 per cent), GTCO (+2.7 per cent), INTBREW (+4.8 per cent), and MTNN (+0.8 per cent) drove the weekly gain.

Similarly, all other indices finished higher except NGX Asem, NGX Meri Value, NGX consumer Goods, NGX Lotus II, NGX Industrial Goods and NGX Sovereign bond indices depreciated by 1.17 per cent, 0.34 per cent, 1.06 per cent, 0.07 per cent, 0.01 per cent and 0.02 per cent respectively while the NGX Growth Index closed flat.

Forty-four equities appreciated during the week, higher than 43 equities in the previous week. Twenty-two equities depreciated, lower than 38 equities in the preceding week.

Analysts at Vetiva Dealings and Brokerage said: “We foresee a tepid session to start the week as investors take a position in names that have seen price declines in recent sessions.

“Also, with the 364 days NTB currently trading sub 4.5 per cent this should further support buy interest going into the new week.”

Cordros Capital said: “In the weeks ahead, we expect the NGX floor to be flooded with corporate earnings as more companies publish their audited 2021 full-year numbers, accompanied by dividend declarations.

“As things stand, we believe investors have fully priced-in dividend expectations. Hence, we think positive surprises from dividend-paying stocks would provide a catalyst for increased buying activities.”