For the first time in several years, the NGX-Insurance index led the gainers’ chart on the equities sector of the Nigerian Exchange Limited (NGX) with 0.8 per cent, buoyed by price appreciation in Regency Alliance insurance (+5.6.per cent) and Lasaco Insurance (+4.1 per cent).
Following the Insurance sector last week was the consumer goods sector with 0.3 per cent, driven by positive sentiments in International Breweries (+9.6 per cent), and Honeywell Flourmill (+5.0 per cent).
However, the NGX-Banking and NGX-Oil & Gas recorded price depreciation, shedding 0.6 per cent and 0.2 per cent last week. The price depreciation was occasioned by a selloff in Unity Bank (-21.6 per cent), Fidelity Bank (-9.8 per cent), JapaulGold (-8.1 per cent) and Seplat (-1.3 per cent).
Consequently, a turnover of 1.7 billion shares worth N30.5 billion was recorded in 37,765 deals by investors on the floor of the exchange. This volume of shares traded was however down from 2.2 billion units, valued at N31.3 billion which was exchanged in 39,362 deals on May 31, 2024.
The financial services industry (measured by volume) led the activity chart with 1.2 billion shares valued at N15 billion traded in 18,782 deals; thus contributing 71.8 per cent to the total equity turnover volume.
The oil and gas industry followed with 171.2 million shares worth N3.5 billion in 3,699 deals. The third place was the consumer goods industry, with a turnover of 116.1 million shares worth N4.4 billion in 4,163 deals.
Trading in the top three equities namely Fidelity Bank Plc, Access Holdings Plc and Veritas Kapital Assurance Plc (measured by volume) accounted for 583.8 million shares worth N5.7 billion in 4,733 deals, contributing 34.3 per cent to the total equity turnover.
A total of 20,886 units of exchange-traded products (ETPs) valued at N7.4 million were traded in 142 deals compared to a total of 23,922 units valued at N2.7 million transacted last in 133 deals during the preceding week.
A total of 292,878 units of bonds valued at N294 million were traded in 27 deals compared to a total of 433,721 units worth N439.5 million transacted last week in nine deals.
On the price movement chart, negative sentiments resurfaced on the bourse following profit-taking embarked upon by investors to recoup their investment on the back of price appreciation recorded in the bourse in the past few weeks.
Precisely, the all-share index and market capitalisation depreciated by 0.1 per cent to close the week at 99,221.14 and N56.128 trillion respectively, amid sell pressures on Transcorp (-11.2 per cent) and United Bank for Africa (-5.4 per cent), causing the Month-to-date and Year-to-date returns to settle at -0.1 per cent and +32.7 per cent, respectively.
Reacting to market performance, analysts at Cordros Capital said: “In the coming week, we expect the overall market sentiment to remain bearish, especially given the lack of significant drivers to buoy investors’ interest over the near-term, before the earnings season.
“One potential factor that could change the direction of activities may be upcoming share issuances by banks, however, the timelines for these issuances remain unclear. Notwithstanding, we advise investors to trade cautiously over the near term in fundamentally justified names.
“Looking ahead to the next week, a mixed trend is expected, driven by profit-taking activities, the publication of third-quarter earnings forecasts by corporates, and portfolio rebalancing. Market pullbacks are anticipated to enhance the index’s upward potential, supported by the ongoing dividend earnings season.
“Investors and traders are expected to also position themselves for expected macroeconomic data, such as the consumer price index for May. However, investors are advised to trade in stocks of companies with sound fundamentals.”
