Nigeria: Honeywell, Transcorp Dominate Stock Market Activities

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The financial services industry dominated, in volume terms, last week’s transactions at the equities sector of the Nigerian Exchange Limited (NGX), leading the activity chart with 445.3 million shares valued at N3.7 billion traded in 7,560 deals.Thus, it contributed 51.39 per cent to the total equity turnover volume and value respectively. Following the financial sector last week was the consumer goods industry with 119.6 million shares worth N4.9 billion in 3,424 deals. The ICT ranked third with a turnover of 87.1 million shares worth N1.9 billion in 924 deals.

Trading in the top three equities namely Honeywell Flour Mill Plc, Transnational Corporation of Nigeria Plc and Guaranty Trust Holding Company Plc (measured by volume) accounted for 203.753 million shares worth N 1.964 billion in 2,515 deals, contributing 23.51 per cent to the total equity turnover volume and value respectively.

Consequently, a total turnover of 866.5 million shares worth N12.3 billion was recorded in 17,291 deals by investors on the floor of the exchange, in contrast to a total of 1.6 billion units, valued at N12.586 billion that exchanged hands in 18,622 deals during the preceding week.

Reacting to market performance last week, the Chief Research Office of Investdata Consulting, Ambrose Omordion said the nation’s economic recovery remains on a slow path even as the inflation rate continues to moderate Y-o-Y, driven by base year effects. He pointed out that despite moderation in the inflation rate, prices of basic food items remain on the high side, traceable to the deficiency in the supply side and heightening insecurity across the country.

“We expect a pullback on the markdown of MTNN for its N4.55 dividend, besides profit-booking and repositioning in value and growth stocks on the strength of half-year earnings reports.

“This is even if investors continue their portfolio reshuffling and studying of the corporate earnings ahead of first-tier banks results and Q2 GDP data.”

Vetiva Dealings and Brokerage said:”We expect another mixed trading session to start the week, as investors continue to take profit on some stocks while buying up other fundamentally sound names across board,” he said.

A total of 1.001 million units valued at N16.8 million were traded in 14 deals compared with a total of 28,938 units valued at N949, 074.38 transacted in 13 deals during the preceding week.

Also, 30,877 units of bonds valued at N31.8 million were traded in 14 deals compared with a total of 139, units worth N139.7 million transacted in 19 deals.

The NGX All-share index and market capitalisation depreciated by 0.1 per cent to close the week at 39,483.08 and N20.571 trillion respectively.

Similarly, all other indices finished lower except NGX Premium, NGX AFR Div Yield, NGX Industrial Goods and NGX Sovereign Bond indices which appreciated by 2.28 per cent, 0.76 per cent, 1.85 per cent, and 0.02 per cent respectively, while the NGX ASeM and NGX Growth Indices closed flat.

36 equities appreciated during the week, higher than 29 in the previous week. 33 equities depreciated, lower than 36 equities in the previous week, while 87 equities remained unchanged, same as 98.

– Theguardian

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