Financial Stocks Account for 41.7% of Total Turnover

Nigerian Exchange Limited, NGX
Nigerian Exchange Limited

Financial Stocks Account for 41.7% of Total Turnover

The financial services industry dominated in volume terms at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX) with 899.5 million shares valued at N15.9 billion traded in 20,278 deals, thus contributing 41.70 per cent to the total equity turnover volume.

The conglomerate industry followed with 736.9 million units worth N12.9 billion in 4,996 deals. The utility industry ranked third with a turnover of 208.5 million shares worth N65.7 billion in 5,602 deals.

Consequently, a turnover of 2.2 billion shares worth N108.8 billion was recorded in 51,556 deals by investors on the floor of the exchange.

This volume of shares traded was, however, higher than 1.9 billion units, valued at N34.1 billion that changed hands in 48,464 deals on March 1, 2024.

Trading in the top three equities namely Transnational Corporation Plc, Transcorp Power Plc and United Bank for Africa Plc (measured by volume) accounted for 1.1 billion shares worth N78.8 billion in 12,167 deals, contributing 48.9 per cent to the total equity turnover volume.

A total of 24,397units of Exchange Traded Products (ETPs), valued at N8.9 million were traded in 136 deals compared to a total of 39,238 units valued at N11.5 million transacted last week in 187 deals.

Also, a total of 63,607 units of bonds, valued at N63.4 million were traded in 27 deals compared with a total of 102,812 units valued at N96.1 million transacted last week in 46 deals.

On the price movement chart, positive sentiments returned to the bourse, following bargain hunting in MTN Nigeria (+10.3 per cent), BUA Cement (+4.4 per cent), FBNH (+15.3 per cent) and increased demand for TRANSCORP (+10.0 per cent) with the Month To Date and Year To Date returns increasing to +1.4 per cent and +35.5 per cent, respectively.

Precisely, the All-share index and market capitalisation appreciated by 2.61 per cent and 6.03 per cent closing the week at 101,330.85 and N57.293 trillion respectively.

Similarly, all other indices finished higher except NGX Banking, NGX insurance, NGX AFR Bank Value, NGX MERI Growth, NGX MERI Value, NGX Consumer

Goods and NGX Sovereign Bonds depreciated by 1.40 per cent, 5.22 per cent, 3.39 per cent, 1.8 per cent,1.86 per cent, 1.21 per cent, and 3.06 per cent respectively.

Reaction on market performance, the Chief Research Officer of Investdata Consulting, Ambrose Omordion said: “The nation’s economic reality continues to reflect on corporate and economic numbers in recent time as 2023 audited financials released so far remain mixed and weak, especially among manufacturing companies to reveal the impact of government policies on the economy as headwinds persisted. “This arises from foreign exchange hiccups which are putting pressure on companies’ operations and performance which have led to many reporting negative earnings and leaving zero reward for their shareholders.

“We expect a continuation of the mixed sentiments as investors and traders digest the latest developments at the fixed income market, with TB’s yield at 21.5 per cent, just as more corporate earnings with dividends are expected to hit the market and investors taking advantage of low valuation to position and rebalancing portfolio.

“This is amid the volatility and pullbacks that add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically,” he said.