Financial stocks lead activities at NGX, contribute 59.7% to turnover

The financial services industry dominated in volume terms at the end of last week’s transactions on the floor of the Nigerian Exchange Limited (NGX).

It led the activity chart with 491.3 million shares valued at N4.499 billion traded in 9,961 deals. Thus, it contributed 59.7 per cent to the total equity turnover and value.

The conglomerate industry followed with 81.7 million shares worth N218.3 million in 605 deals while the consumer goods industry ranked third with a turnover of 55.052 million shares worth N855.3 million in 3,093 deals.

Trading in the top three equities – Guaranty Trust Holding Company Plc, United Bank for Africa Plc and Transnational Corporation Plc (measured by volume) – accounted for 244 million shares worth N2.7 billion in 3,732 deals, contributing 29.7 per cent to the total equity turnover.

A turnover of 822.4 million shares worth N10.4 billion was recorded in 20,643 by investors in 20,643 deals lower than 1.348 billion units valued at N24.5 billion that changed hands in 22,155 deals on July 1, 2022.

A total of 5,099 units valued at N267, 772.87 were traded last week in 17 deals compared with 7,158 shares worth N1.53 million transacted last week in 17 deals.

Also, 156,646 units valued at N158.7 million were traded in 41 deals compared to a total of 163,232 units valued at N167.5 million transacted last week in 32 deals.

The NGX All-share index and market capitalisation depreciated by 0.53 per cent to close the week at 51,557.41 and N27.803 trillion respectively.

Similarly, all other indices finished lower except the NGX AFR bank value index which appreciated at 0.38 percent, while the NGX ASeM and NGX Sovereign Bond indices closed flat.

Particularly, sell-offs in International Breweries (-14.3 per cent), UBN (-9.8 per cent), FBNH (-8.6 per cent), FCMB (-7.5 per cent), and NASCON (-6.4 per cent) led the weekly loss.

An analyst at Codros said: “With the moderation in the prices of bellwether stocks this week, we expect savvy investors to take advantage of this and make re-entry ahead of the H1-22 earnings season.

“However, we do not rule out the possibility of continued profit-taking activities. As a result, we think the local bourse will likely exhibit a choppy pattern. Therefore, we advise investors to take positions in only blue chips.”

Investdata Consulting Limited said: “We note the flow of funds into the fixed income segment on the rate hike by the CBN, as sector rotation persists and players digest the macro-economic data and Q4 unaudited earnings released so far.”

“Also, the market continues to interpret the rising inflation concerning the crude oil price and other factors, amid profit-taking and portfolio rebalancing. This will result in market players targeting sound and dividend-paying stocks in the hope of dividend announcements.”