The Nigerian Exchange Limited (NGX) banking index led the losers’ chart at the end of last week’s transactions with -4.52 per cent loss. Following the sector last week was the insurance indices with -4.07 per cent. The oil and gas indices also declined by -2.47 per cent.
However, the industrial index emerged as the best performing with 6.36 per cent while consumer goods indices followed with 1.30 per cent gain.
On the price movement chart, increased buying interest in Dangote Cement (+9.9 per cent) and BUA Foods (+4.9 per cent) offsetting losses in Zenith Bank (-8.1 per cent) and United Bank for Africa (-8.2 per cent).
Accordingly, the All-share index and market capitalisation appreciated by two per cent to close the week at 104,421.23 points and N57.158 trillion respectively as the Month-to-Date and Year-to-Date returns hit +3.2 per cent and +39.6 per cent respectively.
On the activity chart, a total turnover of 3.9 billion shares worth N95.1 billion was recorded in 69,117 deals by investors on the floor of the Exchange, in contrast to a total of 2.9 billion units valued at N57.8 billion that exchanged hands in 67,962 deals on January 26, 2024.
The financial services industry (measured by volume) led the activity chart with 2.6 billion shares valued at N47.6 billion traded in 31,929 deals; thus contributing 67.8 percent to the total equity turnover.
The oil and gas industry followed with 347.9 million units worth N4.06 billion in 5,972 deals. The third place was the conglomerate industry, with a turnover of 337.7 million shares worth N4.709 billion in 5,493 deals.
Trading in the top three equities namely FBN Holdings Plc, Transnational Corporation Plc and United Bank for Africa Plc (measured by volume) accounted for 961.3 million shares worth N21.3 billion in 9,966 deals, contributing 24.7 per cent to the total equity turnover volume.
Reacting to market performance, the Chief Research Officer of Investdata Consulting, Ambrose Omordion, said the outlook remains mixed due to likely price corrections, or pullbacks occasioned by profit-taking and portfolio reshuffling ahead of the 2024 corporate actions and MPC meeting.
“But investors at this point should not be greedy, but let their decisions be guided by their investment goals and exit strategies, even as the healthy inflow of funds into the equity assets after this pullback due to prevailing rates disconnection in the money market is likely to continue till next NTB primary auction and outcome of the first MPC meeting of the new chairman, CBN Governor.
“Again, the current pullbacks offer traders opportunities to position for the short term, while investors should target fundamentally sound, and dividend-paying stocks for possible dividend income and capital growth.”
Analysts at Codros Capital said: “In the ensuing weeks, we expect the NGX to be flooded with corporate earnings releases as more companies publish 2023 full-year numbers alongside dividend declarations.
“While this influx of results may stimulate buying activities on the bourse, we also anticipate potential profit-taking, especially on stocks that have seen notable price increases recently.”
A total of 181,095 units of Exchange Traded Products (ETPs) valued at N40 million were traded this week in 522 deals compared with a total of 77,804 units valued at N27.478 million transacted in 385 deals during the preceding week.
Also, 52,338 units of bonds valued at N51 million were recorded in 31 deals compared with a total of 98,426 units valued at N95.304 million transacted last week in 60 deals.