MPC: NGX gains N285bn as experts project cautious trading by investors
UBA New Executives at NGX 4: l-r: Group Company Secretary, UBA, Mr. Bili Odum; Executive Director Finance and Risk Management, UBA, Mr Ugo Nwaghodoh; Divisional Head(DH), Business Support Services, Nigerian Exchange Limited, Mrs Irene Robinson-Ayanwale; Deputy Managing Director, United Bank for Africa(UBA) Plc, Mr. Muyiwa Akinyemi; Director, Nigerian Exchange (NGX) Ltd , Erelu Angela Adebayo;; Chief Executive Officer, NGX, Mr. Temi Popoola and Group Managing Director/CEO, United Bank for Africa(UBA) Plc, Oliver Alawuba; Executive Director, North Bank, UBA, Ms Emem Usoro and DH, Capital Markets, NGX; and Executive Director/GCOO, UBA, Mr Alex Alozie, during the ceremonial strike of the closing gong at the floor of the Exchange by Alawuba in honour of recently appointed UBA’s executive management, on Wednesday in Lagos
MPC: NGX gains N285bn as experts project cautious trading by investors
Despite pressure from profit-taking activities recorded during last week’s trading sessions, the equities segment of the Nigerian Exchange (NGX) at the end of the week gained N285 billion Week-on-Weeks (W-o-W).
This is even as economists and financial experts have predicted that activities in the socks market this week would be focused on the outcome of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), which is holding its last meeting of the year today and tomorrow 22, 2022.
However, at the close of last week’s trading activities, the NGX market capitalisation closed at N24.234 trillion against N23.97trillion posted in the previous session, while the All-Share Index (ASI) ended the week 1.22 per cent higher to close at 44,492.73 points.
Specifically, performance across sectors was mixed, as NGX Banking index gained 4.40 per cent W-o-W, Insurance index recorded a weekly loss of 1.34 per cent, while NGX Consumer Goods index lost 1.05 per cent.
The NGX Oil & Gas index shed 0.84 per cent, while NGX Industrial Goods index index depreciated 0.66 per cent W-o-W.
The market breadth for the week was negative as 31 equities appreciated in price, 33 equities depreciated in price, while 93 equities remained unchanged.
AXA Mansard Insurance led the gainers table by 15.69 per cent to close at N1.77, per share. Union Bank of Nigeria (UBN) followed with a gain of 13.04 per cent to close at N6.50, while Guaranty Trust Holding Company (GTCO) went up by 10.83 per cent to close to N19.45, per share.
On the other side, SCOA Nigeria led the decliners’ table by 26.29 per cent to close at N1.29, per share. Guinness Nigeria followed with a loss of 18.96 per cent to close at N60.50, while Regency Assurance declined by 14.81 per cent to close at 23 kobo, per share.
Overall, a total turnover of 694.376 million shares worth N8.667 billion in 15,418 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.101 billion shares valued at N11.714 billion that exchanged hands last week in 15,697 deals.
The Financial Services Industry (measured by volume) led the activity chart with 487.150 million shares valued at N4.229 billion traded in 7,527 deals; contributing 70.16 per cent and 48.80 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 61.896 million shares worth N77.471 million in 396 deals, while the Consumer Goods Industry pulled a turnover of 40.042 million shares worth N1.243 billion in 2,713 deals.
Trading in the top three equities; Access Holdings, Transnational Corporation (Transcorp) and Fidelity Bank (measured by volume) accounted for 232.923 million shares worth N1.237 billion in 1,316 deals, contributing 33.54 per cent and 14.27 per cent to the total equity turnover volume and value respectively.
According to Cordros Securities Limited, in the week ahead, “we believe investors will focus on the outcome of the MPC meeting scheduled to hold next week to gain further clarity on the movement of yields in the FI market.
“As a result, we envisage a cautious trading theme, especially from domestic investors. Notwithstanding, we reiterate the need for positioning only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Going into the new week, analysts at Cowry Assets Management Limited expected the market to trade with mixed sentiments as the digestion of the current inflation numbers put investors in position for the next move in the market as they await judgment from the MPC meeting this week.
“Though, we expect a 25bps rate hike in a bid to quell elevating inflationary pressure. However, we continue to advise investors to trade on companies’ stocks with sound fundamentals and a positive outlook amid the macro-dynamics which remains a headwind,” they stressed.
Also, analysts at Afrinvest Limited said: “in the next trading week, we project a muted performance in the local bourse barring any positive catalyst.”
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