Analysts hinge sustainability on MPC meeting outcome
By Habibat Aliu
Bargain hunting in the shares of some banks and insurance stocks especially AXA mansard and Union Bank of Nigeria lifted the Nigerian Exchange Limited ( NGX) All-Share Index and market capitalisation appreciated by 1.22 per cent to close the week at 44,492.73 and N24.234 trillion respectively.
This is in contrast to the 0.7 per cent lost suffered by investors at the close of transactions on November 11, 2002.
Similarly, other indices finished higher except NGX Insurance, NGX Consumer Goods, NGX Oil & Gas, NGX Lotus II, and NGX Industrial Good, which depreciated by 1.34 per cent, 1.05 per cent, 0.84 per cent, 0.19 per cent, and 0.66 per cent respectively, while the NGX ASM, NGX Growth, and NGX Sovereign Bond indices closed flat.
Specifically, at the close of trading last week AXA mansard led the gainer’s chart with 15.69 per cent to close at N1.77 kobo while Union Bank followed, adding 13.04 per cent to close at N6.50 kobo. Guaranty Trust Holding Company appreciated by 10.83 per cent to close at N19.45 kobo. Nigeria Breweries garnered 10.29 per cent to close at N41.25 kobo. Unilever also added 10.00 per cent to close at N1.00.
However, Scotia topped the loser chart, shedding 26.29 per cent to close at N1.20 kobo. Guinness followed with a loss of 18.06 per cent to close at N60.50 kobo. Regency Assurance dropped 14.81 per cent to close at 23 kobos. Unity Bank also depreciated by 12.28 per cent to close at 50 kobos.
Analysts at Vetiva Dealings and Brokerage firm said: “After several sessions of fluctuating activity this week, positive sentiment ultimately prevailed in the market for a positive close.
” Next week, we anticipate a slightly bearish start, as investors take profit on some of this week’s gainers.”
Coders capital said: “In the week ahead, we believe investors will focus on the outcome of the Monetary Policy Committee ( MPC) meeting scheduled to hold next week to gain further clarity on the movement of yields in the FI market.
“As a result, we envisage a cautious trading theme, especially from domestic investors. Notwithstanding, we reiterate the need for positioning only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Further breakdown of last week’s trading showed that a turnover of 694.4 million shares worth N8.7 billion was exchanged in 15,418 deals by investors on the floor of the exchange.
This volume of shares traded is, however, lower than 1.101 billion units worth N11.714 billion that changed hands in 15,697 deals during the preceding week.
The financial services industry (measured by volume) led the activity chart with 487.150
million shares valued at N4.2 billion traded in 7,527 deals; thus contributing 70.16 per cent to the total equity turnover volume and value respectively.
The conglomerate’s industry followed with 61.9 million shares worth N77.4 million in 396 deals. The consumer goods industry ranked third with a turnover of 40 million shares worth N1.2 billion in 2,713 deals.
Trading in the top three equities namely Access Holdings Plc, Transnational Corporation Plc, and Fidelity Bank Plc (measured by volume) accounted for 232.9 million shares worth N1.2 billion in 1,316 deals, contributing 33.54 per cent to the total equity turnover volume.
A total of 7,014 units of Exchange Traded Funds ( ETFs) valued at N495,893.36 were traded in 34 deals compared with a total of 4,379 units valued at N622,934.20 transacted last week in 33 deals.
A total of 58,708 units of bonds, valued at N58.646 million were traded this week in 21 deals compared with a total of 23,819 units valued at N24.622 million transacted last week in 16 deals.
