- Stock Index Sees 0.89% Uptick
Bullish sentiments prevailed in the domestic equities market in this week’s trading, as the All-Share Index (ASI) notched a 0.89% gain, closing the week at 49,316.29 points.
Specifically, bargain hunting in some banking names (ZENITHBANK: +10.0%; FIDELITYBK: +2.4%; FBNH: +0.9%; STANBIC +0.8%) and WAPCO (+3.0%) caused the MTD and YTD returns to increase to +3.5% and +15.5%, respectively.
However, activity levels were lower this week as trading volume and value decreased by 34.1% and 20.7% w/w, respectively.
Nevertheless, sectoral performance was broadly positive, as the Banking (+2.8%), Industrial Goods (+3.4%), Insurance (+0.5%) and Oil and Gas (+0.4%) indices closed higher, while the Consumer Goods (-0.2%) index was the sole loser for the week.
In the short term, market watchers still see scope for expansion in valuation multiples, as positioning by early birds in dividend-paying stocks ahead of 2022FY dividend declarations should outweigh profit-taking activities.
“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings,” said analysts at Cordros Capital.
During the week, investors staked a total of N12.204 billion on 814.089 million shares in 15,488 deals in contrast to a total of 1.225 billion shares valued at N15.243 billion that exchanged hands the previous week in 15,317 deals.
Measured by volume, the Financial Services Industry led the activity chart with 663.799 million shares valued at N5.517 billion traded in 7,240 deals; thus contributing 81.54% and 45.21% to the total equity turnover volume and value respectively.
The ICT Industry followed with 44.358 million shares worth N4.493 billion in 1,136 deals while the third place was the Consumer Goods Industry, with a turnover of 27.372 million shares worth N1.187 billion in 3,051 deals.
Trading in the top three equities namely Sterling Bank Plc, Access Holdings Plc and Guaranty Trust Holding Company Plc (measured by volume) accounted for 394.878 million shares worth N2.847 billion in 2,274 deals, contributing 48.51% and 23.33% to the total equity turnover volume and value respectively.
Meanwhile, the ETP segment saw investors trading 10,201 units valued at N2.827 million were traded in week in 25 deals compared with a total of 1,169 units valued at N500,331.26 transacted last week in 26 deals.
In the fixed income wing of the NGX, investors traded a total of 10,398 units of bond valued at N11.496 million were traded during the week in 14 deals compared with a total of 20,863 units valued at N22.124 million transacted in the preceding week in 32 deals.
