Financial Services Sector Dominates Nigerian Stock Market Amid Mixed Weekly Performance

The Nigerian stock market witnessed a dynamic trading week, marked by a surge in trading volumes yet a slight drop in market capitalisation. The Nigerian Exchange (NGX) reported a total turnover of 5.641 billion shares worth N33.052 billion across 42,006 deals, a notable increase from the previous week’s turnover of 2.033 billion shares valued at N42.155 billion across 45,157 deals.

Despite the higher volume of transactions, the overall market capitalization depreciated slightly by 0.004 per cent to close at N55.129 trillion.

Financial Services Industry Leads Activity

The Financial Services Industry dominated the activity chart, contributing a substantial 88.22 per cent to the total equity turnover volume with 4.977 billion shares traded, valued at N17.877 billion. This sector’s strong performance was followed by the Oil and Gas Industry, which saw 179.469 million shares traded at a value of N8.954 billion. The Services Industry took the third spot with a turnover of 123.505 million shares valued at N525.417 million.

Key Players Drive Market Movements

Three equities stood out as the major drivers of the market’s trading volume: Standard Insurance Plc, Jaiz Bank Plc, and Guaranty Trust Holdings Company Plc. These companies collectively accounted for 3.951 billion shares worth N7.947 billion, representing 70.04 per cent and 24.04 per cent of the total equity turnover volume and value, respectively.

Daily Market Breakdown

Throughout the week, daily trading volumes saw fluctuations:

• August 19: The market kicked off the week with a robust 3.546 billion shares traded in 9,304 deals, totalling N7.649 billion.
• August 20: Trading volumes dipped significantly to 1.014 billion shares, though the value rose slightly to N7.688 billion.
• August 21-23: The market witnessed declining trends both in volume and value, culminating in 327.3 million shares traded on August 23, valued at N4.609 billion.

Indices and Market Sentiment

The NGX All-Share Index closed at 95,973.45, down by 1.162 per cent from the previous week’s close of 97,100.31. While most indices reflected bearish sentiments, several indices posted gains, including the NGX Oil/Gas Index, which appreciated by 3.54 per cent, and the NGX AFR Div Yield Index, which surged by 6.31 per cent. These gains indicate selective investor optimism in specific sectors despite the broader market’s downturn.

Exchange-Traded Products (ETPs) and Bonds

ETPs saw a reduction in traded units, recording 98,004 units valued at N62.225 million, compared to 149,795 units worth N7.995 million the previous week. The bond market, however, witnessed a notable increase, with 101,335 units valued at N88.825 million traded, up from 36,534 units valued at N36.434 million last week.

Price Movers: Gainers and Losers

The week saw mixed fortunes for equities:

• Top Gainers: R.T. Briscoe Plc led the pack with a remarkable 59.41 per cent gain, followed by Tantalizers Plc with a 54.55 per cent increase.
• Top Losers: Cutix Plc experienced the steepest decline, falling 37.37 per cent, with Dangote Cement Plc also dropping significantly by 10 per cent.

Noteworthy Corporate Action

A significant development came from International Breweries Plc, which listed an additional 141.4 billion shares following a successful rights issue. This increased the company’s total issued shares to 168.3 billion, signalling strategic growth and expansion plans.

Outlook

As the NGX navigates through market volatility, the focus remains on sectors showing resilience and adaptability. Investor confidence will likely hinge on macroeconomic stability and corporate earnings performances in the coming weeks. Market participants are keenly observing these dynamics, anticipating strategic adjustments to maximise returns in an increasingly complex trading environment.

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