Heavy trading in several banks’ shares boosted the volume of shares moved last week, with investors on the floor of the exchange transacting 2.9 billion shares worth N47.4 billion in 44,654 transactions. It was more than the 2.64 billion units worth N45.5 billion that changed hands in 44,189 transactions the previous week.
In particular, the financial services industry (measured by volume) led the activity chart, with 1.9 billion shares worth N26.4 billion moved in 21,707 transactions, accounting for 66.7 percent of overall stock turnover. The oil and gas industry came in second, with 281.3 million shares worth N5.3 billion traded in 4,423 transactions.
The conglomerate industry placed third, with 280.6 million shares worth N1.8 billion traded in 3,079 transactions. United Bank for Africa Plc, Transnational Corporation Plc, and Access Holdings Plc accounted for one billion shares worth N13.6 billion in 9,733 transactions, accounting for 34.9 percent of total stock turnover volume.
A total of 16,562 units worth N2.7 million were transferred in 73 transactions, compared to 5.8 million units worth N65.9 million traded in 101 transactions the previous week.
In addition, 94,257 units worth N103.3 million were transferred in 33 transactions, compared to 138,031 units worth N148 million traded in 25 transactions the previous week.
On the price movement chart, the domestic equities market ended the week on a bearish note, as the all-share index and market capitalization fell by 1.1% to close the week at 67,395.74 and N36.886 trillion, respectively, lowering the year-to-date return to 31.5 percent (previously 33%).
Similarly, all other indices finished lower, with the exception of NGX Insurance, NGX MERI Growth, and NGX Growth, which gained 0.46 percent, 0.55 percent, and 4.15 percent, respectively, while the NGX ASeM index closed flat.
Thirty-two stocks rose throughout the week, compared to 52 stocks the prior week. Fifty-three stocks declined, compared to 35 the previous week, while 70 stocks stayed steady, compared to 68 the previous week.
Analysts at Cordros Capital said: “We anticipate cautious trading on the bourse this week in the absence of strong positive triggers to boost investors’ appetite for risky assets.
“Overall, we reiterate that investors should seek trading opportunities in fundamentally sound stocks as the weak macroeconomic environment remains a significant headwind to corporate earnings.”
Vetiva Dealing and Brokerage said: “With the positive sentiments gradually wearing off in the banks, the market is on the lookout for its next catalyst. We expect mixed trading next week, as investors mull over the latest inflation data, with headline inflation surpassing our estimate by 47bps to print at 25.80 percent.”
Ambrose Omordion, Chief Research Officer of Investdata Consulting Limited, stated that the current market pullback is creating buying opportunities for discerning investors amidst economic reforms of the new government, just as economic managers hit the ground running, a situation expected to provide direction to investors.
“We note that discerning investors have continued to target fundamentally sound companies and defensive stocks to protect their portfolios.”
“Any pullback at this point may add more strength to upside potentials. As such, investors should take advantage of price rallies to take profit, while also looking at trends and events within and across the globe”.
