Equities Market Gains N1.33trn In First Trading Week of 2022

Motolani Oseni

The equities market of the Nigerian Exchange Limited (NGX) closed the first trading week in 2022 on a positive note, as market capitalization appreciated by 5.97 per cent, gaining by a total sum of N1.33 trillion to close the week at N23.628 trillion

Also, the NGX All-Share Index (ASI) was up by 2.7 per cent based on Week-on-Week (WoW) performance to close at 43,854.42 basis points from 42,716.44 basis points it closed in 2021.

All other indices finished higher with the exception of NGX Premium, NGX insurance, NGX AFR Div Yield, NGX Meri Growth, NGX Consumer Goods, NGX Lotus II Indices, which depreciated by 0.47per cent, 0.93 per cent, 0.97 per cent,0.66 per cent, 0.87 per cent, and 0.12 per cent respectively while the NGX ASeM and NGX Sovereign bond indices closed flat.

Activity levels were strong, as trading volume and value surged by 103.7per cent w/w and 246.8per cent w/w, respectively.

Meanwhile, a total turnover of 2.027 billion shares worth N59.014 billion in 15,750 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 995.361 million shares valued at N13.209 billion that exchanged hands prior week’s 10,264 deals.

The Consumer Goods Industry (measured by volume) led the activity chart with 1.255 billion shares valued at N 51.973 billion traded in 2,581deals; thus contributing 61.90per cent and 88.07per cent to the total equity turnover volume and value respectively.

The Financial Services Industry followed with 537.959 million shares worth N4.627 billion in 8,015 deals. The third place was The ICT Industry, with a turnover of 76.906 million shares worth N704.346 million in 933 deals.

Trading in the top three equities namely BUA Foods, Wema Bank Plc, and Transnational Corporation of Nigeria Plc (measured by volume) accounted for 1.349 billion shares worth N51.253 billion in 1,120 deals, contributing 67 per cent and 86.85per cent to the total equity turnover volume and value respectively.

According to analysts at Cordros capital, “In the near term, we believe positioning for 2021FY dividends will continue to support buying activities in the market even as institutional investors continue to search for clues on the direction of yields in the FI market.

“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”