This week unfolded in the Nigerian stock exchange with a notable ebb in both trading value and volume, attributed to a two-day hiatus during the Christmas holiday on Monday and Tuesday. The market reawakened on Wednesday, marking the final trading week of fiscal year 2023. 

In the span of 23,969 deals, a total of 1.18 billion shares, valued at N31.42 billion (approx. USD 34.57 million), changed hands. A stark contrast to the previous week’s bustling activity, where 2.47 billion shares, valued at N53.79 billion (approx. USD 64.54 million), were traded. Delve into the market dynamics with us, analyzing a 52.23% drop in volume and a 41.58% dip in value, providing a vivid snapshot of the contrasting weeks.

Stock price and volume analysis

In trading volume, Jaizbank’s stocks recorded the largest trade over other companies; a total of 109.39 million shares were traded. Zenith Bank’s stock recorded the second-largest trading volume, with 72.27 million shares traded in total. TRANSCORP stocks come in third with 63.10 million shares traded in total. 

The top 10 companies in trading volume account for 46% of the total volume of shares traded for the week. Consistent top ten trading companies in volume include Accesscorp, GTCO, and UBA, all top-tier banks in Nigeria.

TOP 10 COMPANIES BY TRADING VOLUME

In terms of trading value, GEREGU extended its dominance from last week, as it tops other companies this week by a huge margin. GEREGU shares valued at N13.28 billion (approximately USD 14.61 million) were traded this week, beating Zenith Bank, the second-placed company, by more than N10 billion. 

Zenith Bank traded shares worth N2.76 billion (approx. USD 3.03 million). GTCO placed third with N1.60 billion (approximately USD 1.75 million). The top 10 companies in trading value account for 75% of total trading value for the week. Consistent companies on the top ten list include Zenithbank, Accesscorp, and GTCO, among others, all top-tier Nigerian banks.

TOP 10 COMPANIES BY TRADING VALUE

The largest volume of shares was traded on Wednesday, the first day of trading for the week. A total of 433 million shares were traded. The Wednesday rush cooled down a little as there was a dip in trading on Thursday; 385 million shares were traded in total, which was an 11.1% decrease, and a further 14.8% decrease on Friday, as 369 million shares were traded in total.

“The week kicked off on a soaring note with a robust trade of shares totaling N12.94 billion (approx. USD 14.23 million) on Wednesday. However, a significant downturn struck on Thursday, witnessing a 56.2% plunge in trading value to N5.67 billion (approx. USD 6.23 million) compared to Monday’s high. 

On the week’s final trading day, Friday, 29th December the market experienced a resurgence, with shares worth N12.820 billion (approx. USD 14.10 million) changing hands. Despite the uplift, it fell short of the week’s peak set on Monday. Dive into the dynamic fluctuations of the market with us, where each trading day tells a compelling financial story.”

Top Price Gainers

Top Price Decline

The Nigerian stock exchange experienced an increase in market capitalization as it closed the year at N40.9 trillion (approximately USD 44.99 billion). The all-share index also closed at 74,773.77, which experts say is the highest in recorded history. 

According to reports from analysts, investors on the Nigerian stock exchange gained N13 trillion (approximately USD 14.3 billion) this past year. These are promising signs for the Nigerian stock market as the new year begins.

Key areas pertinent to the Nigerian economy, like the Naira/Dollar exchange rate and the rate of inflation coupled with the hike in food prices, remain a topic of concern among observers and investors alike. These areas need urgent intervention to cause a boost in the economy and avoid a further downward trend as faith in government continues to dwindle.

Some companies on the Nigerian stock exchange were recently delisted; companies like Union Bank, 7UP, and PZ, among others, have been delisted or are in the process. The delisting of companies means significant liquidity is withdrawn from the stock market. 

Another worrisome issue is the impact of the Naira/Dollar rate on companies, as companies like Nestle Nigeria have recorded major losses as a result of this lingering problem. It is expected that the exchange rate issue will be resolved to avoid further withdrawals of companies from the Nigerian market, as seen in the past year.

As the year ends and a new fiscal year begins, the Nigerian stock market looks set for change as new things are underway, as previously announced. Some of these include the recapitalization of banks, dual listing with the Saudi exchange, and the approval of Access Bank to begin operations in Hong Kong. 

Another significant event that’s worth mentioning and could have an impact on the stock exchange market is the recent approval and passing into law of the Nigerian Appropriation Bill of N28.7 trillion (approximately USD 31.6 billion). 

These events could shape the Nigerian stock exchange and bring it to new heights. JAIZBANK leads other companies in the volume of shares traded for the week.

• GEREGU extends its lead from last week as stocks with the highest traded value for the week.
• The time-share index rose to an all-time high of 74,773.77 as the year ended.
• In trading value and volume, Wednesday the first day of trading for the week recorded the largest trading for the week.
• Trading for the week only took place on three days as the stock exchange was closed due to holiday breaks.

This article does not advertise or recommend any stock or company. This is purely for information. The author and trendswatch.co will bear no responsibility whatsoever for any decision taken by anyone or any group based on the information gleaned from this article.

Dashboard for December 2023