Zenith, NGX, GTCO lift market turnover by N9.4 billion
Heavy transactions in the shares of Zenith Bank Plc, NGX Group Plc and Guaranty Trust Holding Company Plc (GTCO), last week, lifted the volume of shares traded on the capital market, as a turnover of 562.9 million shares worth N9.4 billion was recorded in 16,013 deals.
This volume of shares traded was higher than a total of 719.4 million units valued at N8 billion that was exchanged in 17,444 deals the previous week.
The top three equities accounted for 183.9 million shares worth N3.499 billion in 3,628 deals, contributing 32.68 per cent to the total turnover.
On the sectoral activity chart, the financial services industry (measured by volume) led the activity chart with 381.9 million shares valued at N4.6 billion traded in 8,627 deals.
The sector contributed 67.86 per cent to the total equity turnover. The ICT Industry followed with 59.3 million shares worth N2.5 billion in 1,272 deals. The services industry ranked third with a turnover of 32 million shares worth N95.8 million in 607 deals.
Further breakdown of last week’s trading showed that the bears dominated activities for 4 of 5 trading days, causing the Nigerian Exchange Limited (NGX) all-share index (ASI) to depreciate by 0.91 per cent to close the week at 49,026.62 points and N26.445 trillion.
Similarly, all other indices finished lower except NGX Premium, NGX Banking, NGX Pension, NGX AFR Bank, Value and NGX MERI Value which appreciated by 0.13 per cent, 2.27 per cent, 0.05 per cent, 0.08 per cent and 1.84 per cent while NGX ASeM, NGX Growth and NGX SOVBND indices closed flat.
The overall market downturn was impacted by losses in Bua cement (-10.4 per cent), Total (-10.0 percent), Guinness (-5.6 per cent), GTCO (-4.6 per cent) and Seplat (-3.9 per cent) stocks. Consequently, the month-to date (MTD) loss increased to -1.6 per cent while the year to date (YTD) gain moderated to +14.8 per cent.
Analysts predicted a gloomy outlook, citing the nation’s macroeconomic challenges, which have continued to impact negatively on businesses and investments.
Specifically, analysts at Codros Capital said: “In the week ahead, we believe investors will be focused on the outcome of the MPC meeting scheduled to gain further clarity on the movement of yields in the FI market.
“As a result, we envisage an extension of the cautious trading theme, especially from domestic investors.
“Notwithstanding, 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 today’s improved activity, the week’s average volume was 112m units, a 20 per cent decline from prior week’s 141.2m units, and we are likely to see another tepid start to next week’s (this week) trading as investors await the MPC’s response to the inflationary pressure.”