Heavy transactions in the shares of Transnational Corporation of Nigeria (Transcorp) Plc, Honeywell Flour Mill Plc and Access Bank Plc last week, lifted the volume of shares traded, as a turnover of 1.3 billion shares worth N8.7 billion was recorded in 19,830 deals by investors on the floor of the exchange.
The volume of shares traded was, however, higher than a total of one billion units valued at N8.2 billion that exchanged hands in 18,102 deals during the preceding week.
The top three equities accounted for 450.6 million shares worth N1.5 billion in 3,696 deals, contributing 33.7 per cent to the total equity volume.
On the sectoral activity chart, the financial services industry (measured by volume) led the chart with 615.6 million shares valued at N4.2 billion traded in 9,021 deals.
The sector contributed 45.9 per cent to the total equity turnover volume and value respectively. The conglomerate industry followed with 253.4 million shares worth N280.8 million in 1,126 deals.
The consumer goods sector ranked third with a turnover of 185.9 million shares worth N1.6 billion in 4,107 deals.
The Nigerian Exchange Limited (NGX) All-share index, which measures the performance of quoted companies, and market capitalisation of listed equities depreciated by 0.6 per cent to close the week at 39,261.01 points and N20.456 trillion respectively.
All other indices finished lower except NGX Insurance, NGX AFR Div Yield, NGX
MERI Growth, NGX Meri Value and NGX Sovereign Bond indices that appreciated by 0.79 per cent, 0.11 per cent, 0.03 per cent, 0.31 per cent and 0.65 per cent respectively, while the NGX ASeM and NGX Growth Indices closed flat.
Analysts predicted a gloomy outlook, citing the nation’s macroeconomic challenges, which have continued to impact negatively on businesses and investment.
Specifically, analysts at Codros capital said: “In the coming week, we expect earnings from the big banks, specifically GTCO and UBA to drive buying sentiments on the bourse, as the declaration of interim dividends may likely accompany the results.
“Overall, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”
Vetiva Dealings and Brokerage said: “We expect the market to remain quiet as investors continue to stay on the sidelines awaiting the remaining Tier-1 half-year.
“However, we do not rule out pockets of gains in names that have declined in recent sessions but overall, we expect investors to continue to stay cautious.”
The Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion predicted mixed performance for September, noting that the factors impeding market growth are still there.
“Given the state of the economy, corporate earnings performance, and other factors would be game-changers as we go into the new month.
“Low volume suggests that institutional investors and others are still cautiously looking at the numbers.
On the price movement chart, 26 equities appreciated during the week, lower than 35 equities in the previous week. 36 equities depreciated, higher than 29 equities in the previous week, while 94 equities remained unchanged lower than 92 equities recorded in the previous week.
A total of 100,152 units of bonds valued at N99.7 million were traded last week in 27 deals compared with a total of 26,861 units valued at N27.5 million transacted in 17 deals during the preceding week.
Also, 54,468 units of Exchange Traded Products (ETP) valued at N2.603 million were traded last week in 19 deals compared with a total of 39,465 units valued at N1.8 million transacted during the preceding week in 27 deals.