Oando, FBNH, GTCO contribute 66.5% to market turnover

High transactions in the shares of Oando, FBN Holdings and Guaranty Trust Holding Company (GTCO) lifted the volume of shares traded last week, as a turnover of 3.435 billion shares worth N30.9 billion was recorded in 21,109 deals by investors.

A breakdown of activities on the Nigerian Exchange Limited (NGX), last week, indicated that the volume of shares traded was higher than a total of 1.392 billion units valued at N27.9 billion exchanged in 19,990 deals.

Trading in the top three equities (measured by volume) accounted for 2.283 billion shares worth N17.4 billion in 3,645 deals, contributing 66.5 per cent to the total equity turnover volume.

On the sectoral performance, the oil and gas services industry (measured by volume) led the activity chart with 2.014 billion shares valued at N13.4 billion traded in 1,350 deals, thus, contributing 58.63 per cent to the total equity turnover volume.

The financial service industry followed by 1.052 billion shares worth N10.2 billion in 10,941 deals.

The consumer goods industry ranked third with a turnover of 183.803 million shares worth N4.5 billion in 4,007 deals.

Further breakdown of last week’s transactions indicated that foreign investors’ interest in Airtel Africa, as well as bargain-hunting activities in FBNH and Nestle, spurred the weekly gain on the price movement chart.

Consequently, the All-Share Index (ASI) and market capitalisation appreciated by 0.25 per cent to close the week at 43,308.29 and N22.598 trillion respectively.

Similarly, all other indices finished higher except NGX 30, NGX CG, NGX Banking, NGX Pension, NGX-AFR Bank Value, NGX MERI Growth, NGX Consumer Goods, NGX Oil/Gas and NGX Industrial Goods indices which depreciated by 0.43 per cent, 0.36 per cent, 0.29 per cent, 0.07 per cent, 0.16 per cent, 0.26 per cent, 2.00 per cent, 0.87 per cent and 0.03 per cent respectively, while the NGX ASeM Index closed flat.

Reacting to market performance, analysts at Cordros capital said: “In the week ahead, we expect market performance to be dominated by the bulls, as positioning by early birds in dividend-paying stocks ahead of 2021 Full Year (FY) dividend declarations should outweigh profit-taking activities.

“We reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”

Afrinvest Securities said: “In the coming week, we expect the market to extend this week’s positive performance on improved sentiment, barring any negative shock.”

A total of 147 units of Exchange Traded Products (ETPs) valued at N15,766.78 were traded in seven deals compared with a total of 54,936 units valued atN481,455.15 transacted in 19 deals during the preceding week.
Also, 31,275 units valued at N33.6 million were traded last week in 21 deals compared with a total of 65,606 units valued at N68.5 million transacted last week in nine deals.

Twenty-nine equities appreciated during the week, higher than 15 equities in the previous week.

Thirty-six equities depreciated, lower than 49 equities in the previous week, while 91 equities remained unchanged lower than 92 equities recorded in the previous week.