Equities market gains 0.72% amid trading for 3 days
By Kayode Tokede
The equities market of the Nigerian Exchange Limited (NGX) gained 0.72 per cent in three days to close (week-on-week) at 39,481.89 basis points from 39,198.75 basis points it opened for trading.
It was a brief trading week as the Federal Government declared Wednesday and Thursday as Public Holidays to mark the end of holy month of Ramadan and commemorate the Eid-al-Fitr celebrations.
Despite the shortened trading week, the bulls regained control of the market following a flawless victory over the bears in the three trading sessions of the week.
There was a buying interests were largely concentrated in banking stocks.
Consequently, the equities market Year-Till-Date performance (YTD) return moderated to -1.9per cent. However, activity levels were weak, as trading volumes and value declined significantly by 52.4per cent w/w and 53.9per cent w/w, respectively.
Investors’ interest in International Breweries Plc that gained 7.6 per cent and bargain hunting in Zenith Bank (+6.8%), Access bank plc (+3.7per cent), Guaranty bank plc(+2.7per cent) and Dangote Cement (+1.6per cent) were the primary drivers of the positive performance this week.
Performance across sectors was broadly positive, with the Banking (+3.2 per cent) index topping the gainers’ chart, followed by the Insurance (+1.9per cent), the Industrial Goods (+0.8 per cent), and Consumer Goods (+0.3 per cent) indices. The Oil and Gas (0.0 per cent) index closed flat.
The NGX weekly report stated that, “A total turnover of 840.334 million shares worth N9.561 billion in 13,239 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.419 billion shares valued at N15.918 billion that exchanged hands last week in 18,459 deals.
“The Financial Services Industry (measured by volume) led the activity chart with 541.015 million shares valued at N5.493 billion traded in 7,824 deals; thus contributing 64.38per cent and 57.45 per cent to the total equity turnover volume and value respectively.
“The ICT Industry followed with 90.382 million shares worth N571.642 million in 500 deals. The third place was Conglomerates Industry, with a turnover of 84.792 million shares worth N512.775 million in 551 deals.
“Trading in the top three equities namely Access Bank Plc, Zenith Bank Plc and Etranzact International Plc (measured by volume) accounted for 284.924 million shares worth N3.470 billion in 2,533 deals, contributing 33.91 per cent and 36.29 per cent to the total equity turnover volume and value respectively.”
The NGX report said a total of 14,477 units valued at N258,795.90 were traded last week in four deals compared with a total of 30,004 units valued at N1.704 million transacted in prior week’s 11 deals.
However, analysts at Cordros securities said, “In the week ahead, we do not think the bulls will repeat the flawless victory that ensued this week as the bears are likely to book profit across most counters.
“Consequently, we see more of a ‘choppy theme’ as cautious trading takes centre stage ahead of a critical MPC meeting scheduled later in the month.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”
