Investors’ Position In Essential Stocks Lifts NGX by N1.17trn

The equities market investors’ trading in some essential stocks has lifted the Nigerian Exchange Limited (NGX) by N1.17trillion at the close of trading activities last week.

Also, the market All Share Index (ASI) rose by 4.25 per cent week on week to close at 53,098.46 basis points from 50,935.03 basis points when the market opened for trading.

Summary of the NGX trading activities for the week showed that a strong buying interest in MTN Nigeria which appreciated by 15 per cent, and Seplat Petroleum which rose by 8.3 per cent, among other notable stocks lifted the benchmark index higher to its fifth-consecutive weekly gain.

The stock market in its Month-till-Date (MtD) and Year-till-Date (YtD) returns for the index increased to seven per cent and 24.3per cent, respectively.

Performance across sectors was mixed, as the Oil and Gas index gained 6.9per cent, Consumer Goods Index added 5.4per cent and Industrial Goods index appreciated by 2.3per cent, while the Insurance depreciated by 1.9 per cent as the Banking index traded closed flat.

Meanwhile, the Exchange weekly report stated that a total turnover of 1.816 billion shares worth N27.194 billion in 36,286 deals was traded last week on the floor of the Exchange, in contrast to a total of 1,598 billion shares valued at N19.603 billion that exchanged hands in prior week’s 21,494 deals.

The report stated that “The Financial Services Industry (measured by volume) led the activity chart with 904.860 million shares valued at N8.498 billion traded in 12,883 deals; thus contributing 49.82per cent and 31.25per cent to the total equity turnover volume and value respectively.

“The Conglomerates Industry followed with 263.830 million shares worth N540.313 million in 1,651 deals.

“The third place was The Consumer Goods Industry, with a turnover of 238.964 million shares worth N5.816 billion in 7,635 deals.

“Trading in the top three equities namely Transnational Corporation Plc, Guaranty Trust Holding Company Plc and Jaiz Bank Plc (measured by volume) accounted for 459,179 million shares worth N3.294 billion in 3,645 deals, contributing 25.28per cent and 12.11per cent to the total equity turnover volume and value respectively.”

Analysts at Cordros research explained in its weekly report, “In the near term, we think the bears are likely to book profit across most counters given the five-week bullish run in the market.

“Thus, we see more of a “choppy theme” as cautious trading takes center stage ahead of the MPC meeting scheduled later in the month. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”