Three stocks contribute 24.6 per cent to market turnover
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 442.525 million shares valued at N4.345 billion traded in 9, 995 deals, thus contributing 62.7 per cent to the total equity turnover and value. The consumer goods industry followed with 82.1 million units of shares worth N2.2 billion in 3,875 deals.
The conglomerate’s industry ranked third with a turnover of 51 million shares valued at N242 million in 694 deals.
Trading in the top three equities – Guaranty Trust Holding Company Plc, Zenith Bank Plc and FBN Holdings Plc – (measured by volume), accounted for 173.852 million shares worth N3.073 billion in 4,324 deals, contributing 24.6 per cent to the total equity turnover.
Last week, a turnover of 705.6 million shares worth N12.9 billion was recorded in 22,124 deals by investors in contrast to a total of 1.546 billion units valued at N16.3 billion that was exchanged in 23,873 deals on July 29, 2022.
A total of 16,247 units of Exchange Traded Products (ETPs) valued at N400,448.65 were traded in 24 deals compared to a total of 35,532 units valued at N1.7 million transacted in 26 deals during the preceding week.
The NGX all-share index (ASI) and market capitalisation appreciated 0.7 per cent to close the week at 50,722.33 and N27.4 trillion respectively.
Gains in MTN Nigeria (+7.4 per cent), BUAFoods (+7.2 per cent), Zenith Bank (+5.8 per cent), Stanbic IBTC (+9.2 per cent), and Lafarge WAPCO (+8.8 per cent) spurred the weekly gain.
Similarly, all other indices finished higher with the exception of the NGX-Main Board, NGX Insurance, NGX Industrial Goods and NGX Sovereign Bond Indices, which depreciated by 1.16 per cent, 0.37 per cent, 5.76 per cent and 0.07 per cent respectively while the NGX ASM index was flat.
Forty-one equities appreciated in price during the week, higher than 11 in the previous week. Twenty-two equities depreciated as against 53 that did in the previous week while 93 equities remained unchanged higher than 92 equities recorded in the previous week.
A total of 118,689 units of bonds valued at N120.9 million were traded in 35 deals compared to a total of 94,006 units valued at N100 million transacted last week in 18 deals.
Reacting to market performance, analysts at Cordros capital said: “Local stocks closed in the green territory despite pressure from profit-taking activities during the week. In the interim, we believe the full swing of the H1, 22 earnings season will dictate market sentiments and possibly drive positive performance as investors hunt for bargains in fundamentally sound stocks with a consistent history of interim dividend payments.
“Notwithstanding, we envisage intense selling pressures on stocks of companies that grossly underperform in H1, 22.
“Overall, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Vetiva Dealings and Brokerage said: “Despite the drawback seen from some selected large-cap names like BUA cement during the week, market sentiments remained largely positive as gainers outnumbered losers all through the five trading sessions.
“We expect to see continued mixed trading to start the week amid slight bargain hunting activities across sectors.”