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Financial stocks lead activities at NGX, contribute 66.5% to turnover

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The financial service industry dominated equities trading, in volume terms, at the end of last week’s transactions on the floor of the Nigerian Exchange Limited (NGX).

The sector led the activity chart with 398.3 million shares valued at N2.2 billion traded in 8,247 deals. Thus, it contributed 66.51 per cent to the total equities turnover.

The conglomerate industry followed with 37.5 million shares worth N49.5 million in 393 deals while the ICT industry ranked third with a turnover of 30.7 million shares worth N8.3 million in 1,218 deals.

Trading in the top three equities – Mutual Benefit, Sterling Bank and Fidelity Bank Plc (measured by volume) – accounted for 181.3 million shares worth N248.9 billion in 854 deals, contributing 30.3 per cent to the total equity turnover.

A total turnover of 598.8 million shares worth N14.2 billion was recorded in 15,859 deals by investors on the floor of the Exchange, lower than a total of 938.02 million units valued at N16.701 billion that changed hands in 15,700 deals in the preceding week.

1,963 units of bonds valued at N1.736 million were traded in six deals compared to a total of 14,672 units valued at N14.269 million transacted in eight deals during the preceding week.

The all-share index and market capitalisation depreciated by 1.09 per cent to close the week at 43,912.64 points and N23.918 trillion respectively.

Similarly, all other indices finished lower with the exception of NGX-Main Board, NGX Banking, NGX MERI Value and NGX Industrial indices which appreciated by 0.83 per cent, 0.07 per cent, 1.21 per cent and 0.34 per cent respectively, while the NGX ASeM and NGX Growth indices closed flat.

Particularly, sell off in DANGCEM (-10 per cent) in the last trading session, and losses in Airtel Afr (-2.8 per cent) and GTCO (-3.2 per cent) drove the weekly loss.

Analysts predict sustained bulls rally as more Q3 scorecards hit the stock market.

Cordros Capital said: “We expect a mixed performance from the market in the week ahead as the bulls will likely increase their positions in light of decent corporate earnings released this week.

“On the other hand, we still see scope for intermittent profit-taking activities given the improving yields in the FI market.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”

Investdata Consulting Limited said: “As more corporate numbers hit the market, the question on the lips of discerning investors is whether or not these Q3 earnings could help the NGX maintain this positive momentum.

“At the current market situation, understanding the big picture and the outlook of the expected financial reports of the companies in this changing business environment across the globe and locally will help market players reposition their portfolios

“Meanwhile, bargain hunters are capitalising on the persisting low valuation in expectation of closing the gap in the future dates for profit. This is just as banking stocks are gaining attention, despite profit taking.”

On the price movement chart, 29 equities appreciated in price during the week, lower than 33 equities in the previous week. 31 equities depreciated in price higher than 29 in the previous week, while 97 equities remained unchanged higher than 95 equities recorded in the previous week.