Investors gain N169.7bn WoW as positive sentiments persist at NGX

Trading activities at the Nigerian Exchange Limited (NGX) ended on a positive note last week as investors booked attractive dividend-paying stocks.

Accordingly, the All-Share Index notched a 0.8 per cent gain to close at 41,763.26 basis points. As a result, the Month-To-Date (MtD) and Year-to-Date (YTD) return increased to +3.8 per cent and +3.7 per cent, respectively.

Specifically, bargain-hunting activities in Nigerian Breweries, BUA Cement, Total Plc and Stanbic IBTC Holdings drove the weekly gain as their respective shares improved by 7.4 per cent, 6.7 per cent, 6.2 per cent and 5.1 per cent.

Equities investors earned N169.67 billion over the four-day trading sessions, aftermarket capitalisation appreciated by 0.78 per cent to close the week at N21.794 trillion respectively.

Overall performance was not reflected in the index chart, as all other indices finished lower with the exception of NGX Main Board, NGX 30, NGX Banking, NGX Oil/Gas, NGX Industrial Goods and NGX Sovereign Bond indices which appreciated by 1.64 per cent, 0.80 per cent, 0.69 per cent, 1.40 per cent, 2.59 per cent and 0.03 per cent respectively, while the NGX ASeM Index closed flat.

However, the activity levels were weaker than the prior week, as trading volumes and value declined by 45.6 per cent Week-on-Week (WoW) and 42.9 per cent WoW, respectively.

Basically, a total turnover of 1.565 billion shares worth N18.384 billion in 21,621 deals were traded by investors on the floor of the Exchange, in contrast to a total of 2.838 billion shares valued at N31.653 billion that exchanged hands in 23,355 deals during the penultimate week.

The Financial Services Industry led the activity chart with 1.179 billion shares valued at N12.746 billion traded in 13,272 deals; thus contributing 75.38 per cent and 69.33 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 131.585 million shares worth N2.151 billion in 636 deals. The third place was Conglomerates Industry, with a turnover of 110.828 million shares worth N 262.227 million in 928 deals.

FBN Holdings Plc, E-Tranzact International Plc and Access Bank Plc made the top three equities traded during the week under review. They accounted for 626.888 million shares worth N6.303 billion in 3,677 deals, contributing 40.07 per cent and 34.29 per cent to the total equity turnover volume and value respectively.

Looking ahead, analysts expect NGX’s floor to be flooded with results as the Q3-2021 earnings season commences in full swing.

Analysts at Cordros Capital forecast that the local bourse is likely to close positive, this week as they expect decent earnings releases across the board to temper selling activities.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” Cordros Capital said in its weekly report.

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Investors gain N169.7bn WoW as positive sentiments persist at NGX