The 14th week of trading on the Nigerian Stock Exchange (NGX) showcased significant shifts in trading volumes, values, and index movements compared to the previous week. The market opened for four trading days this week, same as the last week as the Federal Government of Nigeria declared Friday, March 29, 2024, and Monday, April 1, 2024, as Public Holidays to commemorate the Easter celebration.
From Tuesday, April 2, 2024, to Friday, April 5, 2024, investors’ engaged activities saw a total turnover of 3.680 billion shares worth N57.892 billion in 40,726 deals traded this week by investors on the floor of the Exchange, in contrast to a total of 1.804 billion shares valued at N52.040 billion that exchanged hands last week in 38,550 deals.
The Financial Services Industry powers market activity
According to the NGX report, the Financial Services Industry (measured by volume) led the activity chart with 2.881 billion shares valued at N46.201 billion traded in 21,257 deals, contributing 78.29 per cent and 79.81 per cent to the total equity turnover volume and value for the week in view.
Coming in second is the Services Industry which followed with 479.156 million shares worth N2.282 billion in 2,142 deals.
The Conglomerates Industry came third with a turnover of 123.591 million shares worth N1.651 billion in 2,849 deals.
Comparing the top-performing industries in terms of value traded, the Financial Services industry significantly outpaced both the Services Industry and the Conglomerates Industry by 1923.8% and 2698.4% respectively.
Index movements and market capitalisation
The NGX All-Share Index and Market Capitalization depreciated by 1.08 per cent and 1.05 per cent to close the week at 103,437.67 and N58.498 trillion respectively.
Also, all other indices finished lower except NGX Consumer Goods and NGX Growth which appreciated by 0.94 per cent and 0.32 per cent respectively while the NGX ASeM and NGX Oil and Gas indices closed flat.
Daily trading highlights
Analysing the daily trading activities during the 14th week of 2024 on the Nigerian Stock Exchange (NGX) reveals a series of market activities, showcasing both fluctuations and resilience among investors. Though only open for four days, trading volume peaked on Friday in Week 14.
Tuesday, April 2, 2024:
The market opening on Tuesday recorded 12,925 deals resulting in a turnover volume of 545.49 million shares, worth N14.614 billion, the third-highest for the week. This transaction involved trading in 123 stocks.
Wednesday, April 3, 2024:
On Tuesday, there was a drop of 19.8 per cent in the number of deals, falling to 10,364, from the previous day’s 12,925. This decrease also affected the turnover volume of shares traded, which totalled 405.03 million, declining by 25.7 per cent compared to the previous day’s trading.
On Wednesday, a total of 122 stocks were exchanged, resulting in a total value of N8.91 billion, which was 39.01 per cent less than the previous day.
Thursday, April 4, 2024:
On Thursday, the second-to-last trading day, deals declined by 24.65 per cent, dropping to 8,908 from the 12,925 recorded on Tuesday, the opening day. However, there was a rebound in both value and volume traded.
This resulted in N15.64 billion, the second-highest for the week (7.01 per cent higher than the opening day), from 487.73 million shares traded, also the second-highest for the week, involving 124 stocks.
Friday, April 5, 2024:
On the final trading day of the week, investors engaged in 8,529 deals, trading a total of 2.24 billion shares valued at N18.73 billion, marking the highest activity level for the week. This trading activity involved 121 different stocks.
Notably, Friday saw the fewest deals exchanged for the week, with a decrease of 34.01 per cent compared to the opening day. However, it recorded the highest turnover volume, which was approximately 310.9 per cent higher than the opening day, and the largest value yielded, which was approximately 28.16 per cent higher than the opening day on Tuesday, April 2, 2024.
Top Equities traded:
Trading in the top three equities namely Transnational Corporation Plc, Guaranty Trust Holding Company Plc, and Access Holdings Plc (measured by volume) accounted for 677.439 million shares worth N17.287 billion in 7,789 deals, contributing 38.21 per cent and 32.70 per cent to the total equity turnover volume and value respectively.
NGX Week 14: Price gainers and decliners
Thirty-one (31) equities appreciated in price during the week in view, 22.5 per cent lower than forty (40) equities in the previous week. Forty-two (42) equities depreciated in price, 35.48 per cent higher than thirty-one (31) in the previous week, while eighty-one (81) equities remained unchanged, 2.47 per cent lower than eighty-three (83) recorded in the week 13.
Cutix Plc. with a 22.69 per cent price increase, Morison Industries Plc, 20.45 per cent increase in price, and May &Baker with a 19.09 price increase, led the charts of the top gainers.
On the flip side, FBN Holdings Plc (-14.21 per cent) and Sterling Financial Holdings Company Plc (-12.96 per cent) and Julius Berger (-11.36 per cent) were the top three firms that recorded the most percentage loss respectively.
Exchange-traded Products (ETP)
Exchange-traded products (ETP) saw a total of 19,403 units valued at N8.143 million traded this week in 79 deals compared with a total of 24,397 units valued at N8.936 million transacted last week in 136 deals.
The 14th week of trading on the NGX saw a shakeup, with trading volumes, values, and indexes all shifting significantly. This volatility reflects evolving investor sentiment as they navigate the ever-changing market dynamics.
Friday’s dramatic turnaround is a case in point. Despite emerging as the day with the least deals exchanged, it recorded the highest shares traded volume, as high 300 per cent compared to the opening day and the highest value yielded from shares traded, to be the most valuable trading day.
Furthermore, despite consistent performers like Juli Plc missing from the top 10 gainers list, the top three gainers were not from the financial services industry, which dominated Week 14’s performance.
This underscores the dynamic nature of the market and emphasizes the importance for investors to remain informed and adaptable. As the NGX continues to evolve, success in investing will rely on the ability to adjust strategies to capitalise on opportunities and effectively manage risks.
