The 17th week of trading on the Nigerian Stock Exchange (NGX) was a rollercoaster of activities, reflecting the market’s inherent volatility.
Investors traded a total turnover of 1.839 billion shares worth N34.258 billion in 37,528 deals on the floor of the Exchange. This is in contrast to a total of 1.597 billion shares valued at N32.313 billion that exchanged hands last week in 44,915 deals, indicating a 6.85% decrease in the value of shares traded and a 15.15% decrease in the volume of shares traded compared to the previous week.
Index movements and market capitalisation
The NGX All-Share Index and market capitalisation depreciated 1.39% to close the week at 98,152.91 and N55.512 trillion respectively.
Similarly, all other indices finished lower, with the exception of NGX Insurance, NGX MERI Growth, NGX MERI Value, and NGX Industrial Goods, which appreciated by 0.02%, 1.13%, 0.09%, and 0.38% respectively.
Top performing sectors: Financial Services maintains dominance
The Financial Services Industry maintained its dominance, emerging as the top performer in terms of trading activity. The industry led the activity chart with 1.129 billion shares valued at N22.290 billion traded in 22,008 deals. This contributed 61.38% and 65.06% to the total equity turnover volume and value respectively.
The Conglomerates Industry followed closely, with 194.179 million shares worth N2.822 billion traded in 1,923 deals. Notably, the value of the total turnover of shares traded in the financial services industry dwarfed the second-placed Conglomerates Industry by 689.87%.
The Construction/Real Estate Industry took the third spot, with a turnover of 130.702 million shares worth N649.957 million traded in 556 deals.
Daily trading highlights
Trading Highlights of the 17th Week of 2024 on the Nigerian Stock Exchange showcased market fluctuations. The week kicked off with a robust start on Monday, reached its peak on Wednesday, and then experienced a decline from Thursday to Friday.
Monday, April 22, 2024:
Trading commenced with vigor, tallying 8,298 deals, translating to a turnover volume of 306.62 million shares, valued at N5.301 billion, the third-highest of the week, across 124 stocks. Compared to Friday, April 19, 2024, share values plummeted by 26.06%.
Tuesday, April 23, 2024:
The day dawned slowly but picked up momentum, concluding with a flourish. Investors engaged in 7,324 deals across 118 stocks, a slight dip from the previous day’s 8,298. However, the turnover volume soared to 574.43 million shares, worth N7.06 billion, marking the second-highest for the week. Compared to Monday, April 22, 2024, shares traded surged by 87.34% in volume and 47.95% in value.
Wednesday, April 24, 2024:
Wednesday proved to be the peak day for investors, with the value of 120 stocks hitting N9.576 billion, across 7,907 deals. This marked a 22.10% increase from the prior day and an impressive 80.65% surge from the opening day. Turnover volume reached 395.75 million shares, the second-highest of the week.
Thursday, April 25, 2024:
The market struggled to maintain the previous day’s peak. Investor activity encompassed 7,417 deals, with turnover volume hitting 297.20 million shares, valued at N6.52 billion, exchanged among 125 stocks, the second-highest for the week.
Friday, April 26, 2024:
The week closed on a subdued note, with investors participating in 6,582 deals, trading 256.07 million shares valued at N5.02 billion, marking the week’s lowest activity level. Friday witnessed the lowest number of deals, value, and turnover volume, declining by 11.26%, 10.81%, and 22.91%, respectively, compared to the day before.
Top equities traded
Trading in the top three equities namely United Bank for Africa Plc, Access Holdings Plc, and Transnational Corporation Plc (measured by volume) accounted for 582.024 million shares worth N10.571 billion in 8,849 deals, contributing 31.65% and 30.86% to the total equity turnover volume and value respectively.
NGX Week 17: Top price gainers and decliners
Twenty-seven (27) equities appreciated in price during the week, higher than the thirteen (13) equities in the previous week. Forty-three (43) equities depreciated in price, lower than the sixty-two (62) in the previous week, while eighty-four (84) equities remained unchanged, higher than the seventy-nine (79) recorded in the previous week.
Sunu Assurances Plc led the chart with a 25% price increase, followed by CAP Plc and Transnational Corporation Plc with 20.21% and 14.48% price increases respectively.
On the other side, Oando Plc, Sovereign Trust Plc, and Thomas Wyatt Nig Plc recorded the most percentage losses.
Exchange-Traded Products (ETP)
A total of 15,057 units valued at N5.112 million were traded this week in 161 deals compared with a total of 31,329 units valued at N5.558 million transacted last week in 167 deals.
In conclusion, the 17th week of trading on the NGX showed the ebb and flow of Nigeria’s stock market. While the market started on a vibrant note, buoyed by strong trading activities, it faced downward pressure towards the latter part of the week.
Despite the challenges, certain sectors, notably the Financial Services Industry, maintained their dominance, driving significant trading volumes and value. This resilience underscores investor confidence in key sectors of the economy, despite the broader market fluctuations.
As highlighted by the performance of individual equities, such as Sunu Assurances Plc’s remarkable price increase, and the notable declines in others like Oando Plc, the market remains a dynamic arena where fortunes can shift rapidly.
Furthermore, the surge in foreign portfolio investment (FPI) signals growing international interest in Nigeria’s stock market, reflecting optimism about the country’s economic prospects. However, the comparison with previous years suggests ongoing shifts in investor sentiment and the need for a nuanced understanding of market trends.
The FPI fueled the stock market (NGX) with N93.37 billion in the first quarter of 2024, marking a 415% increase compared to the same period in 2023. This is according to in the Foreign Portfolio Investment data for the first quarter published by the research department of the NGX.
In dollar terms, the actual inflow was $70.1 million during the quarter, compared to $39.2 million in the same period of 2023. Despite a strong showing in Q1 2024, total FPI transactions for Q1 2023, which topped $116.4 million, lagged far behind the $309 million recorded in 2022. In 2019, before the COVID-19 pandemic and the onset of the latest economic crisis, total FPI transactions reached as high as $724 million.
The surge in foreign portfolio inflows into Nigeria’s stock market in the first quarter of 2024 is a positive sign for the country’s economy. It indicates growing investor confidence in Nigeria’s market and economy, despite the challenges posed by the pandemic and other economic factors.
