Insurance index loses 2.9 per cent as investors stake N45.5 billion in equities
The Insurance index led the losers’ chart at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX) with 2.9 per cent, buoyed by sell pressure in Cornerstone insurance (-11.4 per cent) and CHIPLC (-11.3 per cent).
Following the sector on the loser’s chart last week was the industrial goods index which shed 0.5 per cent. The downturn in the sector was occasioned by price depreciation in CAP (-2.2 per cent). The oil and gas index trailed with a decline of 0.1 per cent, following losses in the shares of Eterna Plc (-3.4 per cent).
On the other hand, an uptick in Zenith Bank (+7.4 per cent), Ecobank TransNational Incorporated (+6.7 per cent), PZ Cussons (+14.3 per cent) and Cadbury (+13 per cent) lifted the banking and consumer goods by 5.6 per cent and 2.2 per cent respectively.
Last week a total turnover of 2.6 billion shares worth N45.5 billion was recorded in 44,189 deals by investors on the floor of the exchange. This volume of shares traded was, however, higher than a total of 2.5 billion units valued at N32.8 billion that was exchanged in 40,736 deals on September 1, 2023.
The financial services industry (measured by volume) led the activity chart with 1.6 billion shares valued at N20.9 billion traded in 18,686 deals; thus contributing 60 per cent to the total equity turnover.
The oil and gas industry followed with 385.5 million shares worth N4.7 billion in 4,579 deals. The third place was the consumer goods industry, with a turnover of 221.6 million shares worth N12.7 billion in 8,919 deals.
Trading in the top three equities namely Oando Plc, Fidelity Bank Plc and United Bank for Africa Plc (measured by volume) accounted for 732.3 million shares worth N7.1 billion in 7,020 deals, contributing 27 per cent to the total turnover.
A total of 5.8 million units valued at N65.9 million were traded in 101 deals compared with a total of 9,775 units valued at N1.9 million transacted in 79 deals during the preceding week. On the price movement chart, heavy bargain hunting in the shares of BUA Foods, Zenith Bank, Dangote Cement, Dangote Sugar Refinery and Fidelity Bank lifted the All-Share Index and market capitalisation by 0.9 per cent to close the week at 68,143.34 and N37.295 trillion respectively, pushing the Month-To-Date (MTD) and Year To Date (YTD) gains to +2.4 per cent and +33.0 per cent, respectively.
Similarly, all other indices finished higher except NGX Insurance, NGX Oil and Gas, NGX Industrial Goods, NGX Growth and NGX Sovereign Bond indices which depreciated by 2.94 per cent 0.12 per cent, 0.49 per cent, 2.28 per cent, and 0.46 per cent respectively while the NGX ASeM index closed flat.
Analysts predicted a brighter outlook as investors continue to reposition for blue-chips and dividend-paying stocks ahead of the third quarter interim dividend declarations.
Fifty-wo equities appreciated during the week lower than 55 equities in the previous week while 35 equities depreciated higher than 28 in the previous week, while 68 equities remained unchanged, lower than 72 recorded in the previous week.
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