Trading activities on the floor of the Nigerian Exchange Limited (NGX) wrapped up the last trading week bullish as stock investors gained in N34 billion from January 23 to January 27, 2023.
The upturn for the week was impacted by gains in the banking and NGX growth indices which appreciated by 1.65 per cent and 4.20n per cent from 438.79 points to 446.03 bps, and from 1,843.56 to 1,921.01.
Consequently, the NGX All-Share Index grew from 52594.68 basis points to 52657.88bps with market capitalisation growing by 0.12 per cent to N28.681 trillion.
Meanwhile, mixed sentiments dominated activities during the week as bargain buying in GEREGU which led to 15.3% rise in its share price amid profit-taking activities in MTN Nigeria that weighed the telecoms stocks down by -2.1% underpinned the final weekly performance.
Activity levels were weak, as trading volume and value decreased by 43.3% and 25.6%, respectively.
Specifically, a total turnover of 756.769 million shares worth N13.653 billion in 18,248 deals was traded by investors on the floor of the Exchange in the week under review compared to a total of 1.241 billion shares valued at N15.668 billion that exchanged hands last week in 18,560 deals.
Remarks
Market experts at various quarters expressed optimism that the NGX would be flooded with corporate earnings as more companies publish audited 2022 Full Year numbers, which will be accompanied by dividend declarations.
As such, “We believe this should provide a catalyst for buying activities even as risk-averse investors are likely to remain cautious due to medium-term expectations of an uptick in Fixed Income yields.
“Overall, we advise investors to seek trading opportunities in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings,” analysts at Cordros Capital said in a note.
Trade distribution
Meanwhile, during the week under review, the Financial Services Industry (measured by volume) led the activity chart with 454.718 million shares valued at N4.813bn traded in 8,214 deals; contributing 60.09 per cent and 35.26 per cent to the total equity turnover volume and value respectively.
The ICT Industry followed with 61.735 million shares worth N1.647bn in 1,600 deals. The third place was the Conglomerates Industry, with a turnover of 56.842 million shares worth N119.141m in 622 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Holding Company Plc and Fidelity Bank Plc, (measured by volume) accounted for 165.522 million shares worth N2.320bn in 2,530 deals, contributing 21.87 per cent and 16.99 per cent to the total equity turnover volume and value respectively.
A RECAP
NGX General Outlook for 2023
Recall that According to Temi Popoola, the chief executive officer of NGX, the local bourse would take a flexible approach to strategy execution in 2023, doubling down on its 2022 achievements and expanding on several levers.
He stated this recently as the 2022 Market Review and Preview for 2023, held virtually by the exchange.
“As you know, the NGX Technology Board Listing Rules were approval by the apex regulator, the Securities and Exchange Commission in December 2022. With this, we aim to drive more technology companies to the Exchange and deepen capital formation in the technology sector. Currently we are in consultations with stakeholders in the sector and we are confident of securing a few big names within the year,” the CEO added while speaking at the event.
“On strategic partnerships, we will be forging more with development finance institutions, banks, both local and international to further develop the market. We aim to do more on trading where we improve data dissemination to attract a larger investor base, especially from the retail side. We will be using listings as a vehicle for meeting strategic aspirations as the new dispensation comes in through increased advocacy and engagements.
“NGX sees sustainability as not just important but also a profitable frontier of its business and work is ongoing on developing a framework for certifications in carbon credits trading, pending regulatory approval. On the capital market’s digital transformation, the Exchange is working on USSD launch in collaboration with Telcos and Banks; unlocking the African Capital markets via payment integration with Afreximbank’s Pan African Payment Settlement System.”
The Exchange also sets its sight on the development of new products aimed at attracting the lower rung of the Nigerian demography, says Popoola.
“NGX is also focused on increasing youth participation with the creation of digital asset products powered by Blockchain technology, non-depository receipts and overall increasing the pool of available liquidity in the market. Altogether, 2023 is likely to be a new dawn for the market and the Nigerian economy as significant events take shape in the macroeconomic and political environments.”
