NGX investors invest N13.7bn in 1.12bn shares in a week – The Sun Nigeria
Through Chinwendu Obienyi
In spite ofe Losses recorded in the price of securities trading on the Nigerian Exchange Limited (NGX) floor, a total turnover of 1.121 billion shares worth N13.703 billion in 22,350 trades were traded by investors.
This contrasts with a total of 940.892 million shares worth N11.494 billion that changed hands in 20,077 trades in the previous trading week.
Market analysts last week predicted that savvy investors will take advantage of the sharp fall in major stock prices and return to stocks with solid fundamentals and attractive dividend yields when trading resumes this week.
However, the first trading day of the week saw losses in shares of heavyweight cement companies such as Dangote Cement and BUA Cement, erasing Friday’s cumulative gains of 1.9 percent as the local stock market suffered its second consecutive week of loss.
The All Share Index (ASI) then fell slightly by 0.14 percent w/w and closed at 51,705.61 points. In particular, profit-taking activity at BUA Cement (-3.2 percent), Dangote Cement (-0.7 percent), Nigerian Breweries (-5.5 percent) and WAPCO (-3.2 percent) led to the weekly losses.
As a result, month-to-date (MTD) and year-to-date (YTD) returns settled at -2.4 percent and +21.0 percent, respectively, while the market cap closed at N27.875 trillion from an opening of N27. 914 trillion, a decrease of N39 billion in one week.
Similarly, all other indices closed lower except for the NGX CG, NGX Premium, NGX Banking, NGX Pension, NGX Afr Bank Value, NGX Oil/Gas and NGX Lotus indices, which were down 0.86 percent, 1.50 percent, 0.33 percent gained 0.40 percent, 0.16 percent, 0.32 percent and 0.55 percent, respectively, while the NGX Asem and NGX Growth indices closed flat.
The financial services industry (in terms of volume) topped the activity chart with 806.824 million shares worth N6.075 billion traded in 11,071 stores; They thus contribute 71.99 percent and 44.33 percent to the total share turnover volume and value.
The oil and gas industry followed with 95.031 million shares worth N1.449 billion in 1,849 transactions, while the conglomerate goods industry saw turnover of 66.716 million shares worth N169.517 million in 733 transactions.
Trading in the top three stocks namely FCMB Group Plc, United Bank for Africa Plc and Oando Plc (by volume) accounted for 407.770 million shares worth N2.009 billion in 2,181 transactions, which was 36.39 and 14.66 respectively Percentage contributed to the total share turnover volume and value or
In response to the market development, Cordros Research noted that the choppy trading patterns that have been playing out will continue as investors continue to select stocks with attractive dividend yields while remaining cautious about leaving profits in the market.
“Nonetheless, we advise investors to only invest in fundamentally sound stocks as the unimpressive macro story continues to be a significant headwind for corporate earnings,” it said.