Investors lost N21 billion this week as a result of a 15% decline in the value of transactions on the Nigerian Exchange Ltd. (NGX) over the prior week. More specifically, investors traded 42,851 transactions over the week, totaling 2.259 billion shares for N31.166 billion.
This is in contrast to the N49.976 billion in shares that were traded in 41,610 trades last week, valued at 2.651 billion. The activity chart by volume showed that the financial services industry was the most active, with 23,112 trades involving 1.801 billion shares valued at N22.03 billion.
Consequently, they contributed 79.75 and 70.69 percent, respectively, to the volume and value of the total equity turnover. In 3,124 transactions, the oil and gas industry came in second with 121.001 million shares valued at N1.771 billion. The conglomerate industry came in third with 2,277 trades totaling 90.713 million shares valued at N1.081 billion.
Volume-wise, trading in the top three stocks—Fidelity Bank Plc, Universal Insurance Plc, and Guaranty Trust Holding Company Plc—accounted for 909.821 million shares, valued at N12.057 billion, over 4,798 transactions. making contributions to the overall equity turnover volume and value of 40.28 and 38.69 percent, respectively.
subsequent percent to close the week at 100,022.03 and N56.581 trillion, respectively, compared to 100,057.49 and N56.602 trillion recorded in the previous week.
This led to a loss of N21 billion week-on-week for investors. All other indices finished higher except for NGX 30, NGX Premium, NGX MERI Value, NGX Consumer Goods, NGX Lotus II, and NGX Pension Broad, which depreciated by 0.27, 0.52, 0.01, 0.69, 0.56, and 0.07 percent, respectively. Meanwhile, the NGX ASeM and NGX Sovereign Bond indices closed flat.
Also, thirty-seven equities appreciated in price during the week, lower than 48 equities in the previous week. Forty-five equities depreciated in price, higher than 34 in the previous week, while 72 equities remained unchanged, same as 72 recorded in the previous week.
Veritas Kapital Assurance Plc led the gainers’ chart by 25 percent to close at N1.15 per share, while UPDC Real Estate Investment Trust led the losers’ chart by 17.43 percent to close at N4.50 per share for the week.
Meanwhile, looking ahead to the coming week, analysts at Cowry Asset Management Ltd. predicted that the bulls would lead the charge as the half-year earnings reporting season approaches. The analysts stated that position-taking and sector rotation were anticipated to persist ahead of the new earnings season.
According to them, this will bring changes in liquidity, momentum, volume, and reactions to both positive earnings and disappointing numbers, driving volatility that creates wealth for market players.
“As the changing market structure and fundamentals persist, investors are advised to position themselves in stocks with sound fundamentals,” the analysts said.
