Zenith, NGX, and GTCO Increase Market Revenue By N9.4 billion
The number of shares traded on the capital market increased last week as a result of frequent transactions in the shares of Zenith Bank Plc, NGX Group Plc, and Guaranty Trust Holding Company Plc (GTCO). A total of 562.9 million shares worth N9.4 billion were exchanged in 16,013 transactions.
This week’s amount of shares traded above the previous week’s total of 719.4 million units, valued at N8 billion, which were transacted in 17,444 deals.
The top three equities contributed 32.68 percent of the total turnover with 183.9 million shares worth N3.499 billion in 3,628 deals.
The financial services industry dominated the sectoral activity chart (measured by volume) with 381.9 million shares worth N4.6 billion moved in 8,627 trades.
The industry made up 67.86% of the entire equity turnover. With 59.3 million shares worth N2.5 billion traded in 1,272 transactions, the ICT Industry came in second. With a turnover of 32 million shares worth N95.8 million in 607 deals, the services sector came in third.
Further analysis of last week’s trading revealed that the bears controlled activity on 4 of the 5 trading days, which led to a 0.91 percent decline in the value of the Nigerian Exchange Limited (NGX) all-share index (ASI), which ended the week at 49,026.62 points and N26.445 trillion.
All other indices, with the exception of NGX Premium, NGX Banking, NGX Pension, NGX AFR Bank, Value, and NGX MERI Value, finished lower. These indices gained 0.13 percent, 2.27 percent, 0.05 percent, 0.08 percent, and 1.84 percent, respectively, while NGX ASeM, NGX Growth, and NGX SOVBND indices ended flat.
Losses in the equities of Bua cement (-10.4%), Total (-10.0%), Guinness (-5.6%), GTCO (-4.6%), and Seplat (-3.9%) contributed to the overall market slump. As a result, the year-to-date (YTD) gain slowed to +14.8 percent while the month-to-date (MTD) loss climbed to -1.6%.
The macroeconomic difficulties facing the country, which have continued to have a detrimental influence on businesses and investments, were used by analysts to project a bleak future.
Analysts at Codros Capital specifically said: “In the week ahead, we believe investors will be focused on the outcome of the MPC meeting scheduled to gain further clarity on the movement of yields in the FI market.
“As a result, we envisage an extension of the cautious trading theme, especially from domestic investors.
“Notwithstanding, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Vetiva Dealings and Brokerage stated: “Despite today’s improved activity, the week’s average volume was 112m units, a 20 per cent decline from prior week’s 141.2m units, and we are likely to see another tepid start to next week’s (this week) trading as investors await the MPC’s response to the inflationary pressure.”