By Chinwendu Obienyi
Positive sentiments returned to the domestic bourse when investors took advantage of the moderation in share prices last week to make re-entries into companies with attractive dividend yields.
This was even as bargain hunting in Seplat (+7.5 per cent), GTCO (+2.7 per cent), International Breweries (+4.8 per cent), and MTNN (+0.8 per cent) drove the market’s index 0.40 per cent higher to close the week at 47,328.42 points.
Specifically, market capitalisation grew by N101 billion from N25.406 trillion to close at N25.507 billion while its Month-to-Date (MTD) and Year-to-Date (YTD) return settled at +1.5 per cent and +10.8 per cent, respectively.
Similarly, all other indices finished higher with the exception of NGX Asem, NGX Meri Value, NGX consumer Goods, NGX Lotus II, NGX Industrial Goods and NGX Sovereign bond indices which depreciated by 1.17 per cent, 0.34 per cent, 1.06 per cent, 0.07 per cent, 0.01 per cent and 0.02 per cent respectively while the NGX Growth Index closed flat.
However, activity levels were weaker than in the prior week, as a total turnover of 1.668 billion shares worth N19.481 billion in 25,979 deals was traded last week in contrast to a total of 1.713 billion shares valued at N30.764 billion exchanged hands in the previous week in 24,767 deals.
Further analysis of the market’s performance revealed that the Financial Services Industry (measured by volume) led the activity chart with 1.120 billion shares valued at N10.889 billion traded in 13,514 deals; thus contributing 67.13 per cent and 55.89 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 242.945 million shares worth N395.228 million in 1,418 deals while the Consumer Goods Industry recorded a turnover of 80.368 million shares worth N1.958 billion in 3,876 deals.
Trading in the top three equities namely Transnational Corporation of Nigeria Plc, United Capital Plc and Zenith Bank Plc (measured by volume) accounted for 491.673 million shares worth N5.411 billion in 4,277 deals, contributing 29.48 per cent and 27.78 per cent to the total equity turnover volume and value respectively.
Reacting to the performance, stock traders said they are looking forward to the NGX floor to be flooded with corporate earnings as more companies publish their audited 2021 full year numbers, accompanied by dividend declarations.