The Nigerian equities market defied the usual election fears to consolidate gains for the five trading days, as investors gained N623 billion.
Also, the volume of shares traded increased significantly, as turnover of 799.8 million shares worth N29.4 billion was recorded in 14,194 deals by investors on the floor of the Exchange, higher than 751.9 million units, valued at N20.5 billion that changed hands in 15,822 deals on February 17, 2023.
At the close of transactions last week, market capitalisation appreciated by N623 billion or 2.13 per cent to close the week N29.934 trillion, from N29.310 trillion recorded on Friday, February 17, 2023 while the All-Share Index rose by 1,144.75 points from 53,804.46 points to 54,949.21 points.
Similarly, all other indices finished higher with the exception of the NGX Sovereign Bond index, which depreciated by 0.07 per cent, while the NGX Insurance and NGX ASeM indices closed flat.
The improved performance was buoyed by bargain-hunting activities in Airtel Africa (+3.9 per cent), BUAfoods (+15.6 per cent) and Geregu (+13.8.per cent).Analysts predicted cautious trading this week, noting that the outcome of the election will determine market direction.
Cordros capital said: “We believe investors will be focused on the outcome of the highly anticipated 2023 Presidential elections. Thus, we see more of a ‘choppy theme’ as cautious trading dominates the trading activities.
“Overall, we advise investors to seek trading opportunities in only fundamentally sound stocks as the weak macro story remains a significant headwind for corporate earnings.”
Analysts at Vetiva Dealings and Brokerage said: “Investors bought up stocks across board, as all sectors closed the day in the green. We anticipate a mixed session to start off the week while we expect the outcome of the election to determine market direction in the new week.”
Afrinvest said: “Despite the upbeat investor sentiment, we anticipate cautious trading next week as post-election developments unravel.”
Further breakdown of last week’s transactions showed that the financial services industry (measured by volume) led the activity chart with 480.1million shares valued at N6.1 billion traded in 6,319 deals; thus contributing 60.03 per cent to turnover volume. The Utilities industry followed with 126.9 million units worth N12.9 billion in 289 deals. The third place was the ICT industry, with a turnover of 54.01 million shares worth N5.9 billion in 1,575 deals.
Trading in the top three equities namely Geregu Power Plc, Guaranty Trust Holding Company Plc and Zenith Bank Plc (measured by volume) accounting for 307.8 million shares worth N17.5 billion in deals, contributing 38.48 per cent to the total equity turnover volume.
A total of 5,760 units of Exchange Traded Funds (ETFs), valued at N1.1 million were traded this week in 40 deals compared to a total of 2,895 units valued at N452,808.58 transacted in 29 deals during the preceding week..
Also, 54,323 units of bonds valued at N54.4 million were traded this week in 9 deals compared with a total of 24,298 units valued at N25.5 million transacted last week in 12 deals.
On the price movement chart, 39 equities appreciated in price during the week higher than 36 equities in the previous. On the other hand 22 equities also depreciated in price lower than 27 in the previous week, while 96 equities remained unchanged, higher than 94 equities recorded in the previous week. (Guardian)