Trading in the shares of Transnational Corporation of Nigeria, Oando and Fidelity Bank Plc dominated in volume terms at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX).
The top three equities accounted for 378.9 million shares worth N995.5 million in 2,998 deals, contributing 27.6per cent to the total equity volume.
Similarly, the financial services industry led the activity chart with 715.4 million shares valued at N4.7 billion traded in 10,274 deals; thus contributing 52 per cent to the total equity turnover volume. The conglomerate industry followed with 212.340 million shares worth N517.6 million in 1,060 deals.
The third place was the oil and gas industry, with a turnover of 153.4 million shares worth N1.6 billion in 3,076 deals.
Consequently, a turnover of 1.374 billion shares worth N11.8 billion was recorded in 22,982 deals by investors on the floor of the exchange.
This volume of shares traded is, however, higher than a total of 896.2 million units valued at N5.2 billion that was exchanged in 11,714 deals during the preceding week.
With profit-taking activities dominating market performance throughout the week., the All-Share Index (ASI) and market capitalisation depreciated by 0.3 per cent to close the week at 38,547.08 and N20.084 trillion respectively.
Similarly, all other indices finished lower except NGX Premium, NGX Consumer Goods, NGX Oil/Gas and NGX Sovereign Bond indices appreciated by 0.02 per cent, 0.06 per cent, 3.84 per cent and 1.97 per cent respectively, while the NGX ASeM and NGX Growth indices closed flat.
Analysts expressed optimism that the slowdown in momentum may not endure, stating that the earnings inflow remains robust enough to support market fundamentals and stock prices, going forward.
Investdata Consulting Limited said the market’s prevailing relative low Price-to-Earnings ratio at this peak of earnings season is a reflection of the value and growth potential of stock prices, especially as many analysts and companies are forecasting higher earnings for Q3.
According to the investment firm, the higher-than-expected earnings will make stocks cheaper, a situation that will drive capital appreciation in the short to long run.
Cordros Capital said: “We believe investors will digest the flurry of earnings released this week to gauge the extent of improvement in the company’s fundamentals given the tepid recovery in macroeconomic conditions.
“As a result, we expect portfolio rebalancing activities into cyclical stocks and positioning in dividend-paying stocks to shape market performance in the week ahead. “With the MPC meeting out of the way, we believe developments in the macroeconomic landscape and corporate actions will shape the direction of the local bourse.”
A review of last week’s transactions showed that sustained buying interest in the shares of some blue-chip stocks, especially Oando and FTN Cocoa, aided the NGX to close on an upward note Monday as the ASI appreciated further by 0.5 per cent.
At the close of trading on Monday, the ASI grew by 181.18 absolute points, representing an increase of 0.47 per cent to close at 38,849.08 points. Similarly, the overall market capitalisation value gained N94 billion to close at N20.241 trillion.
The upturn was driven by price appreciation in large and medium capitalised stocks among which are, Airtel Africa, Julius Berger, Ardova, Lafarge Africa, and UAC of Nigeria (UACN).
After five days of an uptrend, the NGX halted its gaining streak as sell pressure in 20 stocks dragged the ASI by 0.1 per cent.
Specifically, at the close of transactions on Tuesday, the ASI dropped by 46.93 absolute points, representing a decline of 0.12 per cent to close at 38,802.15 points, while the overall market capitalisation value lost N25 billion to close at N20.216 trillion.
The downturn was driven by price depreciation in large and medium capitalised stocks among which are, MTN Nigeria Communications (MTNN), UPDC Real Estate Investment Trust, Africa Prudential, Unilever Nigeria and International Breweries.
Market sentiments closed at par, as 20 stocks constituted the gainers’ chart, while 20 others recorded price depreciation.
Despite price gains that outweighed losses on Wednesday, the NGX extended negative sentiments to two consecutive sessions, as investors’ wealth declined further by N5 billion.
The ASI dropped by 11.12 absolute points, representing a decline of 0.03 per cent, to close at 38,791.03 points. Similarly, the overall market capitalisation dipped by N5 billion to close at N20.211 trillion.
The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Eterna, Zenith Bank, Vitafoam Nigeria, Pharma-Deko Plc, and United Bank for Africa (UBA).
Further breakdown of last week’s trading showed that a total of 12,242 units of Exchange Traded Funds valued at N911, 149.30 were recorded in 17 deals compared with a total of 8,032 units valued at N1.864 million transacted in 19 deals during the preceding week.
Also, 29,324 units of bonds, valued at N30.799 million were traded in 12 deals compared with a total of 11,776 units valued at N12.2 million transacted during the preceding week in 10 deals.