The Financial Sector Accounts For N21.8 Billion Of Weekly Market Activity

Financial Sector

At the conclusion of last week’s transactions on the equities sector of Nigeria’s capital market, the financial services sector dominated in terms of volume.

It topped the list of transactions with 2.1 billion shares worth N21.8 billion traded in 14,008 transactions, making up 69.2% of the total stock turnover.

The conglomerate industry followed the banking sector, with 398.6 million shares worth N1.2 billion transacted in 3,129 deals.

With 1,317 transactions totaling 270.1 million shares worth N1.9 billion, the services sector came in third.

Trading in the top three stocks, Fidelity Bank Plc, Access Holdings Plc, and Transnational Corporation Plc, contributed 43.8% of the total equity turnover with 1.3 billion shares worth N8.2 billion in 5,286 trades.

However, investors on the exchange’s floor transacted a total of three billion shares worth N33.6 billion in 29,505 transactions, which is less than the 3.6 billion units worth N36.4 billion that were transacted in 27,801 transactions the week before.

The all-share index and market capitalization both fell by 0.1% to end the week at 52,187.93 and N28.417 trillion, respectively, due to losses in the shares of top telecommunications provider Airtel Africa (six percent).

While the NGX ASeM and NGX Sovereign Bond indices closed flat, the NGX Main Board, NGX 30, NGX Oil and Gas, NGX Lotus II, NGX Industrial Goods, and NGX Growth depreciated by 0.64 percent, 0.09 percent, 1.67 percent, 0.66 percent, 0.03 percent, and 0.32 percent, respectively.

The decline was attributed by analysts to weak macroeconomic indexes and market turbulence worldwide.

According to Cordros Capital, investors will be paying close attention to the conclusion of the MPC meeting, which is set to take place next week (this week), in order to obtain more insight into how yields are moving in the fixed-income market.

“As a result, we expect cautious trading from domestic investors in the short term. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the uninspiring macro story remains a significant headwind for corporate earnings.”

“Sectoral performance was relatively bullish this week (aside from the telecoms and oil and gas sectors), as buy-interest in the banking sector was sustained,” according to Vetiva Dealings & Brokerage.

“We expect a slow start next week as investors look to take profit on some recent gainers, as that has been the trend in the market lately.”

Afrinvest stated: “We anticipate mild gains on the local bourse as investor hunt for bargains in relatively cheap and fundamentally sound stocks.”

A total of 31,234 Exchange Traded Products (ETFs) worth N2.9 million were traded in 68 deals last week, while 2.9 million units worth N55.7 million were traded in 44 deals this week.

In addition, 126,110 bonds worth N130.9 million were traded in 18 deals as opposed to 22,604 bonds worth N21.8 million that were traded in 20 deals last week.

44 stocks had less growth than 48 stocks did the prior week. In addition, 27 stocks declined, which was less than the 30 stocks that declined the previous week, while 85 stocks remained stable, up from the 78 that did so the week before.

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