By Habibat Aliu
Despite investors’ continued profit-taking, repositioning in bellwether stocks, especially Airtel Africa and Presco lifted the all-share index and market capitalisation by 0.2% to close last week at 52,594.68 points and N28.647 trillion respectively.
All other indices finished higher except NGX CG, NGX Premium, NGX Banking, NGX Pension, NGX AFR Bank Value, NGX AFR Div. Yield, NGX MERI Value, NGX Consumer Goods, NGX Industrial Goods, NGX Insurance and NGX Growth, which depreciated by 1.17.per cent, 1.18 per cent, 2.6 per cent, 0.64 per cent, 2.66 per cent, 2.05 per cent, 2.34 per cent, 0.40 per cent and 1.06 per cent, respectively.
On the activity chart, the financial services industry (measured by volume) led the chart with 1.01 billion shares valued at N5.9 billion traded in 9,165 deals; thus contributing 81.37 per cent to the total equities turnover volume respectively.
The conglomerate industry followed with 46.8 million shares worth N112.9 million in 641 deals. The third place was the consumer goods industry, with a turnover of 42.1 million shares worth N2.1 billion in 2,886 deals.
Trading in the top three equities namely Veritas Kapital Assurance Plc, Sterling Bank Plc and Guaranty Trust Holding Company Plc, (measured by volume) accounted for 605.8 million shares worth N2.1 billion in 1,631 deals, contributing 48.8 per cent to the total equity turnover volume and value respectively.
Consequently, a total turnover of 1.2 billion shares worth N15.7 billion was recorded in 18,560 deals by investors on the floor of the Nigerian Exchange Limited in contrast to a total of 1.3 billion units, valued at N29.6 billion exchanged in 19,816 deals during the preceding week.
Analysts at Cordros Capital said: “The week ahead, we believe investors will focus on the outcome of the MPC meeting scheduled to hold this week to gain further clarity on the movement of yields in the Fixed Income market. If the MPC increases and there is a pass-through impact on yields in the FI market, there could be a realignment of investments between markets that would pressure the performance of the equities market.
“As a result, we envisage cautious trading from domestic investors over the next week and the short term. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the unimpressive macro environment remains a significant headwind for corporate earnings.”
Vetiva Dealings and Brokerage said: “Despite the profit taking seen last week, with the ASI closing negative in three out of the five trading sessions, WTD return closed higher by 16bps, while all sectors remain in the green YTD. Going into the new week, we anticipate another round of mixed trading activities.”
Furthermore, a total of 2,063 units of Exchange Traded Products valued at N1.5 million were traded in 59 deals compared with a total of 7,591 units valued at N1.7 million transacted last week in 58 deals.
Also, 21,845 units of bonds valued at N21.6 million were traded in 14 deals compared with a total of 51,785 units valued at N51.6 million that changed last week in 16 deals.
Thirty-nine equities appreciated during the week, lower than 51 equities in the previous week. Thirty equities depreciated higher than 27 in the previous week, while 88 remained unchanged, higher than 79 equities recorded in the previous week.
