The 12th week of trading on the Nigerian Stock Exchange (NGX), ending on March 22, 2024, witnessed notable shifts in trading volumes, values, and index movements compared to the previous week.
While the week started on a lower note than the preceding week, the last trading day saw a significant uptick, closing 64.8 percent higher than the previous week.
Total turnover during the week amounted to 1.735 billion shares valued at N48.755 billion, traded in 45,237 deals. This marked a slight decrease from the previous week’s figures of 1.773 billion shares valued at N52.867 billion, exchanged in 44,713 deals.
Most performing industries:
Financial Services Sector leads charge
With a commanding presence, the Financial Services Industry spearheaded trading activities, contributing 63.74 percent of the total value traded. This sector exhibited resilience and growth, with a turnover of 1.273 billion shares valued at N31.077 billion, representing a 25.42 percent increase in value compared to the previous week.
Following the Financial Services Industry was the Conglomerates Industry, with 123.237 million shares worth N1.772 billion traded in 3,205 deals. The Consumer Goods Industry came in third place, with a turnover of 104.854 million shares worth N5.292 billion in 6,166 deals.
Index movements and market capitalisation
Despite overall market depreciation, select indices showed signs of resilience and growth. The NGX All-Share Index and Market Capitalization closed the week at 104,647.37 and N59.169 trillion respectively, reflecting a 0.42 percent decrease.
However, several indices, including NGX Banking and NGX Industrial Goods, recorded appreciations, signalling sector-specific strength.
Daily trading insights
Throughout the week, daily trading dynamics showcased a mix of fluctuations and steadfast investor engagement. From Monday’s lower start to Friday’s surge, each day presented challenges and opportunities for market participants. Notably, Friday saw the highest turnover volume and value, indicating heightened activity as the week concluded.
Monday, March 18, 2024: A steady start
The week kicked off with a steady start as the market recorded 9,077 deals, showing a 24.9 percent decrease from the previous week. This resulted in a turnover volume of 287.45 million shares, worth N10.80 billion, the second-highest for the week. Trading involved 120 stocks, indicating a broad spectrum of activity among investors.
Tuesday, March 19, 2024: A surge in activity
Tuesday saw a significant surge in trading activity, with a 5.20 percent increase in deals compared to the previous day, totalling 9,548. This increase translated into a turnover volume of 307.05 million shares, exchanged in 122 stocks. However, the total value of N7.59 billion represented a 29.72 percent decrease from the previous day, indicating a shift in trading patterns.
Wednesday, March 20, 2024: Continued decline
Wednesday witnessed a continuation of the market’s southward movement, with a 10.05 percent decrease in deals traded compared to the first trading day of the week, totaling 8,248. This resulted in a turnover volume of 298.65 million shares, the lowest for the week, involving 124 stocks. The total value for the day stood at N6.84 billion, reflecting a downward trend in trading activity.
Thursday, March 21, 2024: A rebound in activity
The market rebounded on Thursday, with investor engagements leading to 8,790 deals, representing a 6.1 percent increase from the previous day. This increase in deals translated to a turnover volume of 336.82 million shares, a significant 11.35 percent increase compared to the previous day.
The total value for the day stood at N9.29 billion, marking a 26.37 percent increase from the previous day and a 20.2 percent increase from the same day the previous week.
Friday, March 15, 2024: A strong finish
The week concluded on a strong note, with investors trading 9,574 deals, marking an 8.16 percent increase from the previous day. This robust trading activity involved 121 stocks and resulted in a turnover volume of 505.19 million shares, the highest for the week.
The total value for the day stood at N14.24 billion, also the highest for the week and a 64.8 percent increase compared to last week’s closing day.
Throughout the week, daily trading insights revealed a mix of market fluctuations and resilience among investors. Despite the challenges, investors demonstrated a strong commitment to trading, contributing to the overall vibrancy of the NGX.
Top equities traded
The top three equities traded during the 12th week of trading on the Nigerian Stock Exchange (NGX) were United Bank for Africa Plc, FBN Holdings Plc, and Access Holdings Plc, collectively accounting for 564.882 million shares worth N16.990 billion in 8,493 deals. These three equities contributed 32.56% and 34.85% to the total equity turnover volume and value respectively.
It is noteworthy that Access Bank appeared among the top equities traded for the second consecutive week. Comparatively, the volume of shares and value traded for these top equities decreased by 16.62% and approximately 1.72% respectively, compared to the previous week’s contribution by Transnational Corporation Plc, Guaranty Trust Holding Company Plc, and Access Holdings Plc.
Gainers and losers:
Fifty (50) equities appreciated in price during the 12th week, lower than fifty-five (55) equities in the previous week. Thirty-two (32) equities depreciated in price higher than twenty-four (24) in the previous week, while seventy-two (72) equities remained unchanged, lower than seventy-five (75) recorded in the previous week.
Furthermore, Juli Plc with a 46.10 percent gain in price, Nem Insurance Plc, a 45.11 percent increase in price, and bouncing back from its decline last week, International Energy Insurance Plc with a 20.95 price increase, led the charts of the top gainers.
On the flip side, Julius Berger slipped from its position as last week’s top gainer to this week’s most declined stock in price, losing N12.45 (-17.15 percent) of its value, Daar Communications Plc (-14.10 percent) and UPDC Real Estate Investment Trust (-14.53 percent) were the top three firms under the price decliners’ radar.
Exchange-Traded Products (ETP)
Exchange-traded products (ETP) witnessed increased activity, with a total of 10.560 million units valued at N131.549 million traded during the week. This surge in ETP transactions underscores investor interest in diverse investment vehicles.
Conclusion: Navigating market dynamics
The 12th week of trading on the NGX saw a shakeup, with trading volumes, values, and indexes all shifting significantly. This volatility reflects evolving investor sentiment while key factors influencing their decisions include industry performance, regulatory updates, and broader economic trends.
Amid this market volatility, the Financial Services Industry, Congolmerate and the Consumer Goods industry have demonstrated constitency to emerge as the exchange’s most traded industries so far in 2024. This highlights the dynamic nature of the market and as the NGX continues to evolve, savvy investors and traders will be those who can adjust their strategies to seize opportunities and manage risks effectively.
