Index rises by N428b in one week as banks contribute 40.8% to market activities
THREE banks’ stocks – United Bank for Africa ( UBA), Access Holdings and Zenith Bank – dominated activities in the financial service sector of the Nigerian Exchange Limited ( NGX) last week.
With the development, the financial sector maintained its control in volume terms with 1.463 billion shares valued at N18 billion traded in 15,593 deals, thus contributing 74.51 per cent to total equities turnover.
Trading in the top three equities – UBA, Access Holdings and Zenith – accounted for 800.6 million shares worth N11.8 billion in 7,351 deals, contributing 40.78 per cent to the total equity turnover.
Following the banking sector in volume terms, last week, was the conglomerate with 111.1 million shares worth N371.34 million in 1,590 deals. The consumer goods industry ranked third with a turnover of 106.6 million shares worth N2.5 million in 4,641 deals.
In all, a total turnover of 1.96 billion shares worth N33.8 billion was recorded in 30,827 deals by investors on the exchange higher than a total of 3 billion units valued at N33.6 billion that was exchanged in 29,505 deals on May 19, 2023.
On the price movement chart, equities rebounded from last week’s losses as bargain- hunting activities in most highly capitalised stocks, especially Nestle (+ 10 per cent) and MTNN (+ 1.5 per cent) spurred the weekly gain.
Market capitalisation rose by N428 trillion from N28,416 trillion at which it closed on Friday, May 19, 2023, to N28,844 trillion as at Friday, May 26 , 2023 while the allshare index appreciated by 785.95 points or 1.5 per cent from 52, 187.93 to 52, 973.88.
Similarly, all other indices finished higher except NGX Industrial Goods and NGX
Growth, which depreciated by 0.7 per cent and 1.33 per cent respectively while the NGX ASEM and NGX Sovereign Bond indices closed flat.
The positive outing was underpinned by investors’ anticipation of improved 2022 full- year and first- quarter earnings and dividend declarations.
Last week, 60 equities appreciated, higher than 44 equities in the previous week. 21 equities depreciated lower than 27 in the previous week, while 75 equities remained unchanged.
Chief Research Officer of Investdata Consulting
Limited, Ambrose Omordion said: "Investors had remained focused on sound stocks markdown for the dividend.
“These classes of equities continue to attract an inflow of funds as many companies announced their dividend payments and details of yearly general meetings.
"Discerning investors have continued to target sound companies to protect their portfolios post- dividend adjustments. Any pullback at this point may add more strength to upside potentials. As such, investors should take advantage of price rallies to take a profit. Also looking at the trends and events across the globe and domestically," he said.