NGX WK19: Financial Services Industry Dominated Market Share With 61.38% and 65.06% 

TrendsWatch
By TrendsWatch 7 Min Read

The Nigerian Stock Exchange (NGX) witnessed a vibrant 19th week of trading, characterized by increased investor participation and substantial trading volumes. 

The week’s activities brought a wave of optimism to the market, as investors engaged in transactions totalling 2.187 billion shares valued at N50.667 billion across 45,277 deals.

This marked a significant uptick from the previous week’s figures, reflecting a 12.69% increase in shares traded and a 55.16% surge in the value of shares traded.

Index movements and market capitalisation

Despite the buoyant trading activities, the NGX All-Share Index and Market Capitalization witnessed a slight depreciation by 1.36% and 1.35% respectively, closing the week at 98,233.76 and N55.562 trillion. 

Notably, the NGX market cap shed 1.35% compared to the previous week’s figures, suggesting a nuanced market sentiment. However, certain indices like NGX CG, NGX Premium, and others bucked the trend, registering marginal appreciations.

Top performing sectors: 

The Financial Services Industry maintained its stronghold, contributing 65.29% of total market activity. This dominance was evident in the trading of 1.428 billion shares valued at N28.850 billion in 24,418 deals.

Although the volume of shares traded in this sector decreased by 4.5% compared to the previous week, the value increased significantly by 28.5%.

Following closely was the Consumer Goods Industry, which traded 385.661 million shares worth N9.919 billion in 5,826 deals. 

The Conglomerates Industry, coming in third, also made a notable contribution, with a turnover of 133.697 million shares valued at N1.715 billion in 3,271 deals. 

Daily trading highlights

From a strong start on Monday to a subdued close on Friday, the week was marked by fluctuations in turnover volume and value, providing a glimpse into the evolving nature of the Nigerian stock market.

Monday, May 6, 2024:

The week commenced on a positive note as investors traded a turnover volume of 421.73 million shares valued at N8.95 billion across 125 stocks. This marked an uptick of 26% in share values compared to the previous trading day.

Tuesday, May 7, 2024:

Trading activity lost some momentum on the second day of the week, with investors engaging in 9,620 deals across 124 stocks, a 9.44% decrease from the previous day’s 8,714 deals.

However, the turnover volume of shares traded, 425.66 million, was 0.96% higher than the previous day, with the value of shares traded amounting to N8.35 billion.

Wednesday, May 8, 2024:

Wednesday saw the lowest activity for the week, with investors engaging in 8,121 deals across 119 stocks.

The total turnover volume of shares traded was 319.08 million, also the lowest for the week. However, the value of shares traded, N9.18 billion, was the second-highest for the week.

Thursday, May 9, 2024:

Investor activity regained momentum on Thursday, with 8,415 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. 

Compared to the opening day of the week, Thursday witnessed approximately a 20.87% decrease in the number of deals but a 60.39% increase in the volume of shares traded and a 99.8% increase in the value of shares traded.

Friday, May 10, 2024:

The week drew to a close with investors engaged in 8,497 deals, trading 344.38 million shares valued at N7.52 billion

A week-on-week comparison for Friday, May 10, 2024, and Friday, May 3, 2024, showed a decrease in the number of deals engaged in by 8.6%, a decrease in the volume of shares traded by 22.9%, while the value of shares traded increased by 5.9%.

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

The week saw forty equities appreciating in price, albeit lower than the previous week’s forty-two. 

Tantalizers Plc emerged as the top gainer, recording an impressive 27.78% price increase. This significant surge in price followed the company’s successful private placement, which raised an estimated N1.07 billion, thereby boosting investor confidence in the stock. 

Following closely behind were FTN Cocoa Processors and Presco Plc, with price increases of 20% and 15.31% respectively. These gains reflect the positive sentiments towards these companies and their potential for growth in the market.

Conversely, several equities faced price depreciation during the week, highlighting the inherent volatility and risk factors present in the market. PZ Cussons, Sovereign Trust Insurance, University Press Plc, and Secure Electronic Tech. were among the top decliners, experiencing downward pressure on their share prices.

Exchange-Traded Products (ETP)

During the 19th week of trading on the Nigerian Stock Exchange (NGX), Exchange-Traded Products (ETPs) saw a total of 35,016 units valued at N3.276 million traded in 99 deals. This marked a notable increase compared to the previous week, where a total of 18,767 units valued at N1.664 million were transacted in 74 deals.

In conclusion, the 19th week of trading on the NGX was marked by increased trading activity and a bullish trend, with investors seeing a 55.16% increase in the value of shares traded.

Despite the depreciation in the NGX All-Share Index and Market Capitalization, the Financial Services Industry remained dominant, contributing significantly to the total equity turnover volume and value.

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