NGX week 20: Financial Services Industry leads trading activity amid dip

By TrendsWatch 7 Min Read

…as the market cap dips 10% or N55 bn

In the 20th trading week ending Friday, May 17, the Nigerian Exchange (NGX) market saw a total turnover of 1.652 billion shares valued at N42.677 billion in 38,123 deals.

This marks a decrease from the previous week’s total of 2.187 billion shares worth N50.667 billion traded in 45,277 deals. Week 20 witnessed a 24.47% decline in share volume and a 15.76% dip in share value compared to Week 19.

Index movements and market capitalisation

The NGX All-Share Index and market capitalisation fell by 0.11% and 0.10%, closing the week at 98,125.73 and N55.508 trillion respectively. This represents a N55 billion decline from the previous week’s performance. 

Most other indices ended lower, except for the NGX Main Board, NGX Lotus II, NGX Industrial Goods, and NGX Pension Broad, which saw gains of 0.97%, 0.58%, 0.01%, and 0.12% respectively. The NGX ASeM and NGX Sovereign Bond indices remained unchanged.

Top performing sectors in the stock market:

The Financial Services Industry led the activity chart in terms of volume, with 979.48 million shares valued at N16.647 billion traded in 20,708 deals.

This sector contributed 59.30% to the total equity turnover volume and 39.01% to the total value. However, this performance was lower compared to the previous week when the Financial industry contributed 65.29% and 56.94% to the total volume and value of shares traded on the exchange floor.

Following closely behind was the Conglomerates Industry, which ranked second in performance for the week. This sector recorded a trading volume of 239.825 million shares worth N2.879 billion in 2,178 deals.

The Consumer Goods Industry secured the third position, with a turnover of 148.685 million shares worth N3.525 billion in 4,757 deals.

Weekly trading overview: Fluctuations marked the week’s trading activity

The trading week, spanning from Monday, May 13, 2024, to Friday, May 17, 2024, witnessed a series of fluctuations in turnover volume and value.

Despite a rebound in activities on Friday, the market closed with a 211.9% decrease in volume and a 17.2% decrease in the value of shares traded compared to the week’s opening figures.

Monday, May 13, 2024: A strong start

The week commenced on a positive note, with investors trading a turnover volume of 439.1 million shares valued at N11.376 billion, exchanged in 8,607 deals across 125 stocks. This marked a 51.26% increase in the value of shares traded compared to the previous trading day, Friday, May 10, 2017.

Tuesday, May 14, 2024: Loss of momentum

Trading activity lost momentum on the second day of the week, with a 95.69% decrease in the value of shares traded. Investors engaged in 7,951 deals across 119 stocks, representing an 8.25% decrease from the previous day.

The turnover volume of shares traded, 306.59 million, was 43.23% lower than the previous day, with the value of shares traded amounting to N5.81 billion.

Wednesday, May 15, 2024: Bounce back in volume and value

Wednesday saw the market bouncing back, with investors engaging in 7,335 deals across 123 stocks. The total turnover volume of shares traded climbed 15.97% higher from the previous day to 355.6 million, and the value of shares traded, N7.14 billion, increased by 22.84% from the previous trading day.

Thursday, May 16, 2024: Regained momentum

Investor activity regained momentum on Thursday, with 7,296 deals and a turnover volume of 676.42 million shares valued at N16.66 billion, the highest for the week. This activity was across 124 stocks.

Friday, May 17, 2024: Closing the week

The week drew to a close with investors engaged in 6,934 deals, the lowest for the week, trading 140.77 million shares valued at N9.42 billion across 124 stocks.

A week-on-week comparison for Friday, May 10, 2024, and Friday, May 17, 2024, showed a decrease in the number of deals engaged in by 18.39%, a decrease in the volume of shares traded by 59.12%, while the value of shares traded increased by 25.22%.

Top equities traded

The top three equities traded were United Bank for Africa Plc, Nigerian Breweries Plc, and Access Holdings Plc, accounting for 1.020 billion shares worth N23.631 billion in 9,587 deals, contributing 46.63% and 46.64% to the total equity turnover volume and value respectively.

Top price gainers and decliners

Throughout the 20th trading week on the Nigerian Stock Exchange (NGX), notable shifts in stock prices were observed, reflecting the dynamic nature of the market.

A total of 28 equities saw price appreciation during the week, a decrease from the 40 equities in the previous week. Conversely, 51 equities experienced price depreciation, higher than the 37 recorded in the previous week. Additionally, 76 equities remained unchanged, down from 77 in the previous week.

Leading the pack of gainers was International Energy Insurance Plc, which recorded an impressive 11.49% increase in its share price. McNichols Plc and Custodian Investment Plc followed closely behind, with price increases of 9.89% and 9.68% respectively.

However, amidst the gains, several equities faced price depreciation, underscoring the inherent volatility and risk factors in the market. PZ Cussons, NEM Insurance, Eterna PLC, and United Bank for Africa were among the top decliners, experiencing downward pressure on their share prices.

Exchange-Traded Products (ETP)

Exchange-traded products (ETP) also witnessed activity during the week, with a total of 4,103 units valued at N2.429 million traded in 110 deals. This was a decrease from the previous week’s total of 35,016 units valued at N3.276 million transacted in 99 deals.

In conclusion, the 20th trading week on the Nigerian Exchange (NGX), ending on Friday, May 17, witnessed a 0.11% decline, resulting in a loss of N55 billion.

Additionally, Nigeria’s stock market saw a total turnover of 1.652 billion shares valued at N42.677 billion in 38,123 deals. This implies a decrease from the previous week, which recorded a total turnover of 2.187 billion shares worth N50.667 billion in 45,277 deals.

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