Equities market appreciates by N329bn in one week
By Kayode Tokede
The equities market of the Nigerian Exchange Limited (NGX), appreciated by N329billion in one week to close at N21.625trillion from N21.296trillion it opened for trading last week.
The equities market recorded its fifth consecutive weekly gain as strong buying interest in FBN Holdings that gained 29.6 per cent, Okomu Oil appreciated by 8.2 per cent and Guaranty Trust Holdings Plc (GTCO) gained 3.5 per cent to drive the NGX All-Share Index by 1.4 per cent higher to close at 41,438.15 basis points from 40, 868.36 basis points.
Consequently, the MTD and YTD return rose to +3.0per cent and +2.0per cent, respectively. Likewise, the activity levels mirrored the upbeat performance, as trading volumes and value grew by 31.6per cent w/w and 45.1per cent w/w, respectively.
Across our sectoral coverage, the Banking (+2.6per cent), Insurance (+1.6 per cent), Industrial Goods (+1.0per cent), Oil and Gas (+0.6per cent) and Consumer Goods (+0.5per cent) indices all posted gains.
The Exchange in its weekly report explained that, “A total turnover of 2.838 billion shares worth N31.653 billion in 23,355 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 2.179 billion shares valued at N21.963 billion that exchanged hands last week in 22,438 deals.
“The Financial Services Industry (measured by volume) led the activity chart with 2.428 billion shares valued at N26.442 billion traded in 13,884 deals; thus contributing 85.56per cent and 83.54 per cent to the total equity turnover volume and value respectively.
“The Consumer Goods followed with 170.407 million shares worth N1.653 billion in 3,350 deals. The third place was Conglomerates Industry, with a turnover of 68.996 million shares worth N133.382 million in 625 deals.
“Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Holding Company Plc and Ecobank Transnational Incorporated Plc (measured by volume) accounted for 1.834 billion shares worth N23.372 billion in 5,981 deals, contributing 64.61% and 73.84per cent to the total equity turnover volume and value respectively.”
The report stated that a total of 135,084 units valued at N2.041 million were traded this week in 17 deals compared with a total of 260 units valued at N5,362.50 transacted last week in two deals.
in addition, a total of 19,603 units valued at N21.192 million were traded this week in 19 deals compared with a total of 62,005 units valued at N65.842 million transacted last week in 39 deals.
According to analysts at Cordros capital, “In the coming week, we expect investors’ sentiment will be shaped by Q3 earnings releases and the outcome of the bond auction scheduled to hold on Wednesday as they seek clarity on the movement of yields in the Fixed Income market.
“As a result, we envisage a mixed trading pattern due to bargain hunting activities in dividend-paying stocks amid intermittent profit-taking activities.
“Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
