NGX closes on bullish trends amid renewed buy sentiment

The equities market of the Nigerian Exchange Limited (NGX) closes last week’s trading activities on a positive note, due to renewed buy sentiment, especially on Telecoms stocks.

Hence, the NGX All-Share Index rose week-on-week (W-o-W) by 109.02 points or 0.25 per cent to close at 43,308.29 points.

Also, the market capitalisation grew N54 billion W-o-W to close at N22.598 trillion.

Reflective of the non-broad-based performance of the benchmark index, most sector gauges closed in the red. The NGX Banking, NGX Consumer Goods, NGX Oil & Gas and the NGX Industrial indices plummeted by 0.29 per cent, 2.00 per cent, 0.87 per cent and 0.03 per cent to close at 390.48 points, 549.62 points, 364.84 points and 2,193.80 points respectively. However, the NGX Insurance rose by 3.56 per cent to close at 183.058 points.

The market breadth for the week was negative as 29 equities appreciated at price, 36 equities depreciated in price, while 91 equities remained unchanged. University Press led the gainer’s table by 27.83 per cent to close at N2.94, per share. Ikeja Hotel followed with a gain of 17.39 per cent to close at N1.35, while Honeywell Flour Mill went up by 16.81 per cent to close to N3.96, per share.

On the other side, UACN Property Development Company Plc (UPDC) led the decliners table by 14.94 per cent to close at N1.31, per share. Cutix Plc followed with a loss of 14.02 per cent to close at N2.76, while MRS Oil Nigeria declined by 9.87 per cent to close at N13.70, per share.

Overall, a total turnover of 3.435 billion shares worth N30.915 billion in 21,109 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.392 billion shares valued at N27.886 billion that exchanged hands last week in 19,990 deals.

The Oil & Gas Services Industry (measured by volume) led the activity chart with 2.014 billion shares valued at N13.448 billion traded in 1,350 deals; contributing 58.63 per cent and 43.50 per cent to the total equity turnover volume and value respectively. The Financial Service Industry followed with 1.052 billion shares worth N10.168 billion in 10,941 deals, while the Consumer Goods Industry traded a turnover of 183.803 million shares worth N4.492 billion in 4,007 deals.

Trading in the top three equities; Oando Plc, FBN Holdings (FBNH) and Guaranty Trust Holding Company (GTCO) accounted for 2.283 billion shares worth N17.395 billion in 3,645 deals, contributing 66.47 per cent and 56.27 per cent to the total equity turnover volume and value respectively.

On Exchange Traded Products (ETPs) platform, a total of 147 units valued at N15,766.78 were traded last week in 7 deals compared with a total of 54,936 units valued at N481,455.15 transacted prior week in 19 deals, while on the Bond market, a total of 31,275 units valued at N33.596 million were traded last week in 21 deals compared with a total of 65,606 units valued at N68.507 million transacted previous week in 9 deals.

This is even as MTN International Mauritius offered for sale up to 575 million shares of its shareholding in MTN Nigeria Communications (MTNN) Plc to high-net-worth investors in Nigeria.

The Nigerian equities market is expected to close positive this week as retail investors increased their holdings in dividend-paying stocks ahead of 2021 full year declarations.In the new week, analysts at Cowry Assets Management Limited expected the local bourse index to trade sideways as investors wait on the sidelines to take advantage of declining stock prices. We expect more sales from retail investors than institutional investors as yuletide season beckons.