Three banks’ stocks – United Bank for Africa (UBA), Access Holdings and Zenith Bank – dominated activities in the financial service sector of the Nigerian Exchange Limited (NGX) last week.
With the development, the financial sector maintained its control in volume terms with 1.463 billion shares valued at N18 billion traded in 15,593 deals, thus contributing 74.51 per cent to total equities turnover.
Trading in the top three equities – UBA, Access Holdings and Zenith – accounted for 800.6 million shares worth N11.8 billion in 7,351 deals, contributing 40.78 per cent to the total equity turnover.
Following the banking sector in volume terms, last week, was the conglomerate with 111.1 million shares worth N371.34 million in 1,590 deals. The consumer goods industry ranked third with a turnover of 106.6 million shares worth N2.5 billion in 4,641 deals.
In all, a total turnover of 1.96 billion shares worth N33.8 billion was recorded in 30,827 deals by investors on the exchange higher than a total of 3 billion units valued at N33.6 billion that was exchanged in 29,505 deals on May 19, 2023.
On the price movement chart, equities rebounded from last week’s losses as bargain-hunting activities in most highly capitalised stocks, especially Nestle (+10 per cent) and MTNN (+1.5 per cent) spurred the weekly gain.
Market capitalisation rose by N428 trillion from N28,416 trillion at which it closed on Friday, May 19, 2023, to N28,844 trillion as at Friday, May 26 , 2023 while the all-share index appreciated by 785.95 points or 1.5 per cent from 52, 187.93 to 52, 973.88.
Similarly, all other indices finished higher except NGX Industrial Goods and NGX Growth which depreciated by 0.7 per cent and 1.33 per cent respectively while the NGX ASeM and NGX Sovereign Bond indices closed flat.
The positive outing was underpinned by investors’ anticipation of improved 2022 full-year and first-quarter earnings and dividend declarations.
Last week, 60 equities appreciated, higher than 44 equities in the previous week. 21 equities depreciated lower than 27 in the previous week, while 75 equities remained unchanged.
Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion said: “Investors had remained focused on sound stocks markdown for the dividend.
These classes of equities continue to attract an inflow of funds as many companies announced their dividend payments and details of yearly general meetings.
“Discerning investors have continued to target sound companies to protect their portfolios post-dividend adjustments. Any pullback at this point may add more strength to upside potentials. As such, investors should take advantage of price rallies to take a profit. Also looking at the trends and events across the globe and domestically,” he said.
Codros Capital said: “We believe investors will continue to cherry-pick stocks while paying rapt attention to the outcome of treasury bills and bonds auctions to gauge the direction of yields in the FI market.
“As a result, we expect cautious trading from domestic investors in the short term. Overall, we believe developments in the macroeconomic landscape and corporate actions will shape the direction of the local bourse in the near term.”
Vetiva Dealing and Brokerage said: “Today’s (Friday) market witnessed significant gains driven by the banking sector, we cannot rule out the possibility of profit-taking from investors in Monday’s session.
“As we enter the final month of Q2’23, we anticipate a mixed trading pattern in Monday’s session, while we expect investors to react to any major takeaway from the inauguration of a new administration on Monday.”
On the exchange-traded products (ETPs) a total of 16,176 units valued at N5 million were traded in 86 deals compared to 2.9 million units worth N55.71 million transacted in 44 deals during the preceding week.
Also, 12,837 units of bonds valued at N12.608 million were traded this week in 16 deals compared with a total of 126,110 units valued at N130.953 million transacted last week in 18 deals.
