By David Akinmola
At the close of transactions last week, a turnover of 711.6 million shares worth N15.3 billion was recorded in 16,662 deals on the floor of the Nigerian Exchange Limited (NGX).
This volume of shares traded was higher than 694.4 million units, valued at N8.7 billion that exchanged hands in 15,418 deals on November 18, 2022.
Specifically, the financial services industry (measured by volume) led the activity chart with 461.2 million shares valued at N3.7 billion traded in 7,653 deals, thus contributing 64.8 per cent to the total equities turnover.
The conglomerate industry followed with 99.9 million shares worth N139.2 million in 582 deals. The third place was the ICT industry, with a turnover of 37.9 million shares worth N7.6 billion in 1,050 deals.
Trading in the top three equities namely: Transnational Corporation Plc, AIICO Insurance Plc, and Zenith Bank Plc (measured by volume), accounted for 194.6 million shares worth N1.2 billion in 1,974 deals, contributing 27.4 per cent to the total equities turnover volume.
On the price movement chart, the dominance of the bulls remained unabated last week, causing the all-share index (ASI), which measures the performance of quoted companies to record gains in all trading sessions following demand for bellwether stocks.
Consequently, the ASI and market capitalisation appreciated by 6.9 per cent to close the week at 47,554.34 and N25.902 trillion respectively.
Similarly, all other indices finished higher except NGX Oil & Gas and NGX Sovereign Bond, which depreciated by 1.29 per cent and 0.3 per cent respectively, while the NGX ASeM and NGX Growth indices closed flat.
Particularly, foreign investors’ interest in Airtel Afri (+14.2 per cent) and bargain hunting in Dangote Cement (+10 per cent), MTN Nigeria (+6.6 per cent), BUA Cement (+9.7 per cent), BUA food (+11.2 per cent) and NB (+19.7 per cent) spurred the positive sentiments.
Reacting to market performance, analysts at Cordros Capital said: “In the week ahead, we do not think the bulls will repeat the flawless victory that ensued this week as the bears are likely to book profit across most counters.
“Consequently, we see more of a ‘choppy theme ‘ 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.”
Afrinvest Research said: “In the coming week, we anticipate the bullish streak would continue following renewed interest in the market. However, this sentiment might be short-lived as economic catalysts remain absent.”
Vetiva Dealings and Brokerage said: “Despite the mixed sentiments in the market, we have seen four straight sessions of positive weekly closes.
“This week posted the most significant return due to the appreciation in the large-cap counters (Airtel Afri, Dangote Cement, BUA cement, and BUAFoods). Barring any major sell-offs next week, we expect the market to maintain its positive Week-to-Date return.”
Further breakdown of last week’s transactions showed that a total of 7,712 units of Exchange Traded Products (ETPs), valued at N980,634.80 were traded last week in 31 deals compared to a total of 7,014 units valued at N495,893.36 transacted in 34 deals during the preceding week.
Also, 21,215 units of bond, valued at N22.4 million were traded this week in 10 deals compared to 58,708 units worth N58.6 million transacted during the preceding week in 21 deals.
