The financial service industry (measured by volume) closed higher at the end of last week’s transactions on the Nigerian Exchange Limited (NGX).
It led the activity chart with 732.418 million shares valued at N7.213 billion traded in 9,131 deals, thus contributing 72.62 per cent to the total equity turnover.
Following the financial sector, last week were the conglomerates with 52.931 million shares worth N170.271 million in 656 deals.
The ICT industry ranked third with a turnover of 52.716 million shares worth N1.806 billion in 701 deals.
Trading in the top three equities namely Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, and Zenith Bank Plc (measured by volume) accounted for 261.741 million shares worth N5.813 billion in 3,498 deals, contributing 25.95 per cent to the total equity turnover.
Consequently, a turnover of 1.008 billion shares worth N10.923 billion was recorded in 17,297 deals by investors on the floor of the exchange, in contrast to a total of 1.348 billion units valued at N12.14 billion that changed hands in 21,581 deals during the preceding week.
With the bourse recording the second consecutive week of bearish sentiments, the all-share index (ASI) and market capitalisation depreciated by 0.12 per cent to close the week at 37,947.18 and N19.771 trillion respectively.
All other indices finished lower except NGX Banking, NGX AFR Div Yield, NGX MERI Growth, NGX Oil/Gas and NGX Sovereign Bond indices which appreciated by 0.09 per cent, 0.32 per cent, 0.15 per cent, 1.81 per cent and 0.64 per cent respectively, while the NGX Premium, NGX ASeM, and NGX Growth indices closed flat.
The Chief Executive Officer of Investdata Consulting, Ambrose Omordion said: “Selloff and profit booking persisted ahead of inflation data and monetary policy meeting outcome as consumer price index had recently slid for two consecutive months in the face of a weak economic recovery.
“Investors are on the sidelines, despite not expecting a change in monetary policy at this pace of growth and recovery as uncertainty looms,” he said.
Codros Capital said: “We believe the outcome of the bond auction scheduled to hold next week will shape market sentiments. As a result, we expect investors to trade cautiously while taking positions in stocks with attractive dividend yields ahead of H1, 2021 dividend declarations, which intermittent profit-taking activities would match.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”
Further analysis of last week’s trading indicated that the nation’s equities market reopened on a negative note on Monday, following losses suffered by most blue-chip stocks, especially CWG, International Breweries, and Champion Breweries, as market capitalisation plunged by N71 billion.
The ASI declined by 136.3 absolute points, representing a loss of 0.36 per cent to close at 37,857.89 points. Similarly, the overall market capitalisation value shed N71 billion to close at N19.725 trillion.
The market downturn was driven by price depreciation in large and medium capitalised stocks amongst which are: MTN Nigeria Communications (MTNN), Zenith Bank, BUA Cement, International Breweries, and Lafarge Africa.
NGX extended negative sentiments to two consecutive trading sessions on Tuesday as more blue-chip stocks depreciated, resulting in a further slide in the capitalisation declined further by N1billion.
At the close of trading, the ASI fell by 0.6 points to close at 37,857.24 points. Similarly, the overall market capitalisation declined by N1 billion to close at N19.724 trillion.
The downturn was driven by price depreciation in large and medium capitalised stocks amongst which are; Custodian Investment, FBN Holdings (FBNH), PZ Cussons Nigeria, Zenith Bank, and GTCO.
A total of 7,403 units of Exchange Traded Products (ETFs) valued at N486, 759.25 were traded last week in 17 deals compared with a total of 34,123 units valued at N784, 264.64 transacted in 13 deals during the preceding week.
Also, 29,583 units of bonds valued at N29.805 million were traded in 12 deals compared with a total of 147,590 units valued at N173.172 million transacted during the preceding week in 15 deals.