Company Plc and Access Holdings lifted the volume of shares traded, as a turnover of 4.3 billion shares worth N62.2 billion was recorded in 44,344 deals by investors on the floor of the Exchange last week.
The volume of shares traded was, however, higher than a total of 2.2 billion units, valued at N45.9 billion that changed hands in 31,655 deals on June 9, 2023.
The top three equities accounted for 1.5 billion shares worth N27.6 billion in 8,875 deals, contributing 34.5 per cent to the total equity volume.
On the sectoral activity chart, the financial services industry (measured by volume) led the chart with 3.3 billion shares valued at N45.2 billion traded in 23,490 deals.
The sector contributed 77.2 percent to the total equity turnover volume. The oil and gas industry followed with 247.3 million shares worth N2.3 billion in 3,561 deals.
The consumer goods industry ranked third with a turnover of 223.3 million shares worth N4.6 billion in 5,982 deals.
On the price movement chart, reforms of the new administration continued to spur buying interest across all sectors on the equities market as Year To Date (YTD) return rose by 15.1 per cent from 9.1per cent recorded in the preceding week, following price upticks in Total (+21.0 per cent), Seplat (+10.0 per cent), Wapic Insurance (+40.4 per cent), and Sovereign (+27.5 per cent). MTN Nigeria (+9.6 per cent), Airtel Africa (+7.8 per cent), Guinness (+9.9 per cent), and Dangote Sugar (+9.5 per cent).
Precisely, the Nigerian Exchange Limited (NGX) All-share index, which measures the performance of quoted companies, and market capitalisation of listed equities
appreciated by 5.4 per cent to close the week at 59,000.96 and N32.126 trillion respectively.
Similarly, all other indices finished higher with the exception of NGX Industrial Goods and NGX Growth which depreciated by 1.63 percent and 1.07 per cent respectively while the NGX ASeM index closed flat.
Reacting on market performance, analysts at Investdata Consulting Limited said many stocks are hitting 52-week highs on a buying pressure and an expected fall in interest rates.
Specifically, the chief research officer of the firm, Ambrose Omordion noted that cost of production in the short-term is expected to remain high which would ultimately affect company performance, especially those into manufacturing sector.
He added the high production cost would lead to a reduction in the dividend payout for many listed firms.
According to him, all eyes are on the Federal government to make more pronouncements and issue directive that would pave way for policy implementation and achieve all that were promised.
“As more equities continue to witness a rally on the inflow of funds into low, medium and high cap stocks, this is expected to guide investors on how to reposition their portfolios ahead of the Q2 earnings season, as quoted companies started notifying the exchange and investors of their closed periods and board meeting dates to approve half-year financials.”
Codros Capital said: “We expect profit-taking activities following the recent rally in the market. However, we expect this to be tempered by bargain-hunting activities from ‘early bird’ investors ahead of the half year earnings season.
“Overall, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Afrinvest said: “In the coming week, we anticipate the bullish momentum would continue driven by positive sentiment and strategic positioning in the market.”
For Vetiva Dealings and Brokerage, the market yearns for its next positive driver, as investors continue to mull over the latest inflation data from the NBS.
” We expect mixed trading next week, with likely decline in the average traded volume for the week.”
Further breakdown of last week’s trading showed that a total of 28.490 million units of Exchange Traded Products (ETP) valued at N254.2 million were traded in 94 deals compared to 4.5 million units valued at N57.7 million transacted in 116 deals during the preceding week.
Also, 46,043 units of bonds, valued at N50.7 million were re orded in 25 deals compared
with a total of 125,410 units valued at N126.5 million that was recorded in 35 deals.
77 equities appreciated in price during the week higher than 52
equities in the previous week. 24 equities depreciated in price lower than 27 in the previous week.
