Investors stake N27.2 billion on equities in four days

The Nigerian Exchange Limited (NGX) last week, recorded a turnover of 921.8 million shares worth N27.2 billion in 15,601 deals.

This volume of shares traded was, however, higher than 1.8 billion units valued at N18.9 billion that changed hands in 12,036 deals on December 30, 2022.

The market opened for four trading days last week as the Federal Government declared Monday, January 2, 2023, a public holiday to mark the New Year celebration.

At the close of transactions last week, the financial services industry (measured by volume) led the activity chart with 616.5 million shares valued at N6.5 billion in 7,208 deals; thus contributing 66.8 per cent to the total equity turnover volume.

The industrial goods industry followed with 138.3 million units worth N13.4 billion in 1,063 deals. The conglomerate industry ranked third with a turnover of 55.9 million shares worth N92.8 million in 502 deals.

Trading in the top three equities namely FBN Holdings Plc, BUA Cement Plc and Guaranty Trust Holding Company Plc (measured by volume) accounted for 450.3 million shares worth N17.2 billion in 1,862 deals, contributing 48.9 per cent to the total equities turnover.

On the price movement chart, the bourse closed the first trading week of 2023 on a negative note as the benchmark index and market capitalisation depreciated by 0.06 per cent to close the week at 51,222.34 and N27.899 trillion respectively.

All other indices finished higher except NGX Main Board, NGX Industrial Goods and NGX Sovereign Bond indices, which depreciated by 0.54 per cent, 0.58 per cent and 0.09 per cent respectively, while the NGX ASeM index closed flat.

Precisely, sell-offs in the shares of Airtel Africa (-5.2 per cent) and Buacement (-1.8 per cent) amid bargain hunting in Buafoods (+14.6.per cent) and NB (+14.6 per cent) drove the weekly loss.

Reacting to market performance last week, analysts at Cordros said: “In the interim, we believe positioning for 2022 full-year earnings releases and accompanying dividends declarations will continue to support buying activities on the local bourse even as institutional investors continue to search for clues on the direction of yields in the FI market.

“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”

Vetiva Dealings and Brokerage said: “AIRTELAFRI’s net loss of 5.20.per cent eroded the positive performance seen all through the week, as all sectoral indices except the industrials closed the week in the green.

“Also, for the first time this week, the NGXCNSMRGDS index closed in the red, as investors took profit in PZ, Nestle and Flourmills while BUAfoods and NB halted their bullish run. We expect another mixed trading session next week, as investors take profit on recent gainers.”

A total of 2,172 units of Exchange Traded Products, valued at N1.5 million were traded last week in 43 deals compared with a total of 1.308 million units valued at N6.536 million transacted last week in 31 deals.

Also, a total of 6,695 units valued at N6.4 million were traded this week in 15 deals compared with a total of 69,961 units valued at N66.888 million transacted last week in 18 deals.

Thirty-eight equities appreciated during the week, lower than 44 equities in the previous week. 17 equities depreciated higher than16 in the previous week, while 102 equities remained unchanged.