A turnover of 3.021 billion shares worth N31.8 billion was recorded in 29,153 trades by investors on the trading floor of the Nigerian Exchange Limited last week.
The volume of shares traded, however, was over 1.8 billion units worth N27.2 billion which exchanged hands in 36,286 transactions during the week ended May 13, 2022.
Specifically, the financial services sector (measured by volume) topped the business chart with 2.24 billion shares valued at N12.4 billion traded in 10,817 transactions; thus contributing 74.30% to the total stock rotation volume.
The conglomerate industry followed with 345.8 million units worth N558.9 million in 1,676 deals. The consumer goods industry ranked third with turnover of 149 million shares worth N2.8 billion in 5,632 transactions.
Trading in the top three stocks, namely FCMB Group Plc, Jaiz Bank Plc and Transnational Corporation Plc (measured by volume), accounted for 1.7 billion shares worth N4 billion in 2,188 trades, contributing 56.2% to the total turnover of the shares.
A further breakdown of last week’s transactions showed that a total of 141,582 units worth N3 million were traded this week in 17 transactions, compared to a total of 175,506 units worth N3 million. 6.8 million naira traded in 36 transactions.
Additionally, 31,003 units worth N33.2 million were traded in 11 deals, compared to a total of 43,629 units worth N48.5 million traded in 33 deals.
On the price action chart, the bears dictated the proceedings as investors booked profits on the flagship stocks. Consequently, the NGX All-share index and market capitalization depreciated by 0.22% to close the week at 52,979.96 and 28.562 trillion naira respectively.
Similarly, all the other indices ended lower, except for the NGX-Main Board, NGX Insurance, NGX MERI Growth and NGX Oil/Gas indices, which appreciated at 1.60%, 3.63%, 0.14% and 0.30%, while the NGX Asem Index and NGX Sovereign Bond closed flat.
In particular, the profit-taking activities seen in the shares of Flourmill (-10.7%), WAPCO (-8.3%), International Brewery (-6.8%) and MTN Nigeria (-4.8%) ) drove the weekly loss.
Sector performance was mixed, with the insurance (+3.6%) and oil & gas (+0.3%) indices advancing, while banking (-1.2%), goods consumer goods (-1.0%) and industrial goods (-0.6%). percent) indices have declined.
Analysts at Cordros Capital said: “In the coming week, we believe investors will focus on the results of the MPC meeting scheduled for next week to gain further clarity on the evolution of returns in the FI market.
“As a result, we are considering cautious buy action from investors interested in cyclical stocks with attractive dividend yields. he macroeconomic environment remains a significant headwind for corporate earnings.
Investdata Consulting said renewed buying interest in blue chips resulted from bargain hunters taking advantage of pullbacks to position themselves as sector and portfolio rotation continued.
“This has come at a time when market participants are also digesting inflation and earnings yield reports, ahead of next week’s Monetary Policy Committee (MPC) meeting and other currency-related concerns. general election activities next year, starting with the political party primaries at the end of this month.
“As we have always said, profit taking is one of the market dynamics that creates opportunities for new entrants as players wait for setbacks to jump into fundamentally sound stocks with positive returns above inflation,” he said.