Investors stake N12.831bn on NGX in one week


By Kayode Tokede

A turnover of 1.058 billion shares worth N12.831 billion was  transacted in 17,854 deals this week by investors on the floor of the Exchange, in contrast to a total of 1.082 billion shares valued at N9.548 billion that exchanged hands last week in 17,933 deals.

The Financial Services Industry (measured by volume) led the activity chart with 714.677 million shares valued at N5.951 billion traded in 9,718 deals; thus contributing 67.53per cent and  46.38per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 97.181 million shares worth N3.297 billion in 3,006 deals. The third place was ICT Industry, with a turnover of 75.987 million shares worth N583.715 million in 679 deals.

Trading in the top-three equities namely Zenith Bank Plc, Sterling Bank Plc and Fidelity Bank Plc (measured by volume) accounted for 261.344 million shares worth N2.712 billion in 2,862 deals, contributing 24.70per cent and 21.13per cent to the total equity turnover volume and value respectively.

A total of 1,026 units ETPs valued at N160,140.75 were traded this week in 8 deals compared with a total of 706 units valued at N5.127 million transacted last week in 6 deals, even as 5,335 units of Bonds valued at N5.350 million were traded this week in 10 deals compared with a  total of 91,560 units valued at N96.346 million transacted last week in 30 deals.

The NSE All-Share Index and Market Capitalization appreciated by 1.11 per cent to close last week at 39,156.28 basis points and N20.409 trillion respectively.

Similarly, all other indices finished higher with the exception of NSE Insurance, NSE ASeM and NSE Sovereign Bond which depreciated by 4.12 per cent, 2.00 per cent and 1.45 per cent respectively, while the NSE Growth Index closed flat.

Sentiments remained broadly positive for the second consecutive week, as investors continued to cherry-pick stocks with attractive dividend yields ahead of H1-2021 dividend declarations.

Notably, foreign investors’ interest in Okomu Oil (+20.7 per cent) and bargain-hunting in Stanbic (+6.1 per cent), Flour Mill (+5.3 per cent), Dangote cement Plc (+4.6 per cent) and Dangote Sugar Plc (+4.4 per cent) spurred the weekly gain.

Consequently, the MTD return printed 1.9%, while the YTD loss moderated to -2. per cent.

Activity levels were mixed, as trading volume declined by 2.2% w/w, while trading value rose by 34.4% w/w. Sectoral performance was broadly positive, as the Industrial Goods (+2.4per cent) index led the gainers’ chart, followed by the Oil and Gas (+1.4per cent), Consumer Goods (+1.1per cent) and Banking (+0.9per cent) indices.

The Insurance (-4.1per cent) index emerged as the week’s sole loser.

According to analysts at Cordros Securities, “In the week ahead, we expect investors to continue cherry-picking stocks ahead of the H1-2021 dividend declarations.

“With the recent development in the FI market, we are approaching an inflexion point; we, therefore, see scope for increased buying interest from risk-averse investors.

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