By Chinwendu Obienyi
Despite losses recorded in the price of securities trading on the floor of the Nigerian Exchange Limited (NGX), a total turnover of 1.121 billion shares worth N13.703 billion in 22,350 deals was traded by investors.
This is in contrast to a total of 940.892 million shares valued at N11.494 billion that exchanged hands in the prior trading week in 20,077 deals.
Market analysts had last week predicted that with the significant moderation in the prices of bellwether stocks, savvy investors will take advantage and make a re-entry into stocks with sound fundamentals and attractive dividend yields on resumption of trading this week.
However, losses were recorded in the shares of heavyweight cement companies such as Dangote Cement and BUA Cement, on the first trading day of the week, offsetting the cumulative gains of 1.9 per cent as of Friday, as the local bourse suffered its second consecutive weekly loss.
As a result, the All-Share Index (ASI) declined marginally by 0.14 per cent w/w to close at 51,705.61 points. Notably, the profit-taking activities in BUA Cement (-3.2 per cent), Dangote Cement (-0.7 per cent), Nigerian Breweries (-5.5 per cent), and WAPCO (-3.2 per cent), led the weekly loss.
Consequently, the Month-to-Date (MTD) and Year-to-Date (YTD) return settled at -2.4 per cent and +21.0 per cent, respectively while market capitalisation closed at N27.875 trillion from an opening value of N27.914 trillion, representing a decrease of N39 billion in one week.
Similarly, all other indices finished lower with the exception of the NGX CG, NGX Premium, NGX Banking, NGX Pension, NGX Afr bank value, NGX Oil/Gas and NGX Lotus indices which appreciated at 0.86 per cent, 1.50 per cent, 0.33 per cent, 0.40 per cent, 0.16 per cent, 0.32 per cent and 0.55 per cent while the NGX Asem and NGX Growth indices closed flat.
The Financial Services Industry (measured by volume) led the activity chart with 806.824 Million shares valued at N6.075 billion traded in 11,071 deals; thus contributing 71.99 per cent and 44.33 per cent to the total equity turnover volume and value respectively.
The Oil and Gas Industry followed with 95.031 million shares worth N1.449 billion in 1,849 deals while the Conglomerates Goods Industry recorded a turnover of 66.716 million shares worth N169.517 million in 733 deals.
Trading in the top three equities namely FCMB Group Plc, United Bank for Africa Plc and Oando Plc (measured by volume) accounted for 407.770 million shares worth N2.009 billion in 2,181 deals, contributing 36.39 and 14.66 per cent to the total equity turnover volume and value respectively.
Reacting to the performance of the market, Cordros Research, noted that choppy trading patterns that played out will still persist as investors continue to cherry-pick stocks with attractive dividend yields, and at the same time remain cautious about leaving gains in the market.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings”, it said.