Heavy transactions in the shares of Transnational Corporation of Nigeria (Transcorp) Plc, Honeywell Flour Mill Plc and Access Bank Plc last week, lifted the volume of shares traded, as a turnover of 1.3 billion shares worth N8.7 billion was recorded in 19,830 deals by investors on the floor of the exchange.
The volume of shares traded was, however, higher than a total of one billion units valued at N8.2 billion that exchanged hands in 18,102 deals during the preceding week.
The top three equities accounted for 450.6 million shares worth N1.5 billion in 3,696 deals, contributing 33.7 per cent to the total equity volume.
The financial services industry (measured by volume) dominated the sectoral activity chart with 615.6 million shares worth N4.2 billion exchanged in 9,021 trades. The sector was responsible for 45.9% of the overall equity turnover volume and value. The conglomerate sector came in second, with 253.4 million shares worth N280.8 million traded in 1,126 transactions.
The consumer goods sector came in third with 185.9 million shares worth N1.6 billion traded in 4,107 transactions.
The All-share index of the Nigerian Exchange Limited (NGX), which monitors the performance of quoted businesses, and the market capitalisation of listed shares both fell by 0.6 per cent this week, closing at 39,261.01 points and N20.456 trillion, respectively.
Except for NGX Insurance, NGX AFR Div Yield, and NGX Insurance, all other indexes finished lower.
The MERI Growth, NGX Meri Value, and NGX Sovereign Bond indexes rose 0.79 per cent, 0.11 per cent, 0.03 per cent, 0.31 per cent, and 0.65 per cent, respectively, while the NGX ASM and NGX Growth Indices remained unchanged.
Analysts anticipated a bleak future, citing the country’s macroeconomic difficulties, which have continued to harm firms and investment.
In the coming week, we expect earnings from the main banks, notably GTCO and UBA, to boost purchasing emotions on the exchange, since the declaration of interim dividends may likely accompany the results,” analysts at Codros Capital said.
Overall, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.
Vetiva Dealings and Brokerage said: “We expect the market to remain quiet as investors continue to stay on the sidelines awaiting the remaining Tier-1 half-year.
“However, we do not rule out pockets of gains in names that have declined in recent sessions but overall, we expect investors to continue to stay cautious.”
Ambrose Omordion, Chief Research Officer of Investdata Consulting Limited, forecasted mixed results for September, adding that the constraints inhibiting market growth remain in place.
“Given the state of the economy, corporate earnings performance, and other factors would be game-changers as we go into the new month”.
“Low volume suggests that institutional investors and others are still cautiously looking at the numbers”.
On the price movement chart, 26 stocks rose throughout the week, compared to 35 stocks the week before. 36 shares declined, compared to 29 equities the previous week, while 94 equities stayed steady, compared to 92 equities the week before.
Last week, a total of 100,152 units of bonds worth N99.7 million were traded in 27 deals, compared to 26,861 units worth N27.5 million transacted in 17 deals the week before. In addition, 54,468 units of Exchange Traded Products (ETP) worth N2.603 million were traded in 19 deals last week, compared to 39,465 units worth N1.8 million traded in 27 deals the week before.