The Nigerian stock market witnessed a notable downturn, signaling a shift from previous weeks of robust performance. As we navigate through the year, signs of cooling enthusiasm become apparent. 

In the current week in focus, 2.98 billion shares, valued at N57.87 billion (approximately USD 64.21 million), exchanged hands, marking a 42.2% and 25.34% decrease in volume and value compared to the previous week’s 5.16 billion shares worth N77.52 billion (approximately USD 86.98 million). Stay tuned for insights on this evolving global financial landscape.

Stock volume and price analysis

In trading volume, Transcorp maintained its chart dominance with a three-week dominating run on the stock market. A total of 288.32 million Transcorp shares were traded this week. Transcorp’s chart dominance in terms of trading volume may be connected to the fact that their stocks have performed well in recent times, with the company recording a good profit in 2023. 

Transcorp also recently achieved a one trillion-naira market cap, joining the likes of Dangote Cement, MTN Nigeria, UBA, and others in this category.

UBA comes next with a total of 227.53 million shares traded. STERLINGNG comes in third with 170.43 million shares traded in total. Other notable companies include ACCESSCORP with 146.78 million, Jaiz Bank with 113.48 million, and GTCO with 85.62 million.

TOP 10 COMPANIES BY TRADING VOLUME

Top 10 companies by trading volume (in 1,000,000 units)

In trading value, UBA came in as the company with the highest value of traded shares for the week. A total of N6.87 billion shares (approximately USD 7.63 million). UBA displaced Transcorp this week to clinch the top spot. DANGCEM, Africa’s biggest cement manufacturer, had the second-largest value of shares traded for the week, with shares worth N5.24 billion (approximately USD 5.81 million). 

TRANSCORP, the company with the largest volume of shares traded for the week, came in third with shares worth N4.94 billion (approximately USD 5.48 million) traded for the week. Other notable companies include Zenith Bank with N4.36 billion, Nestle with 2.46 billion, and MTNN, the biggest telecoms operator in Nigeria, with N3.63 billion.

TOP 10 COMPANIES BY TRADING VALUE

Top 10 companies by trading value (in 1,000,000 naira)

Daily trading analysis

Regarding trading volume, trading for the week started on a high note, as 722 million shares were traded on Monday, the first day of trading. There was a 3% increase on Tuesday, as a total of 748 million shares were traded. Wednesday recorded a 53% drop in the volume of shares as 488 million shares were traded. The week failed to recover from the plunge recorded on Wednesday, as trading ended on Friday with 519 million shares traded, which is a 28% decline from the volume of shares traded on Monday.

Regarding trading value, trading for the week started on a high note, with shares worth N14.41 billion (approximately USD 15.99 million) traded. On Tuesday, the second day of trading, shares worth N16.28 billion (approximately USD 18.06 million) were traded. 

There was a dip in the value of shares traded on Wednesday as 8.04 billion shares were traded, which represents a 50.62% decrease. The trading value ended on a low note compared to how it started on Monday. On Friday, shares worth N8.85 billion (approx. USD 9.82 million) were traded.

TOP 10 PRICE GAINERS

TOP 10 PRICE DECLINERS

On Wednesday, January 24, 2024, the all-share index of the Nigerian stock exchange crossed 100,000 for the first time in the history of the Nigerian stock exchange. On Wednesday, the All-Shares index reached 101,571.11 points. The Nigerian stock market record-breaking feat may trigger another resurgence of a positive run that will serve to benefit investors.

The naira/dollar woes continued as the value of the naira fell on the parallel market during the week. The naira was exchanged with the dollar for as high as 1335 and 1400 in some quarters. The CBN, Nigeria’s apex bank’s efforts to address the situation has not yielded definite results. 

The CBN recently cleared a portion of FX backlogs for banks with hopes of overturning the naira/dollar exchange debacle, but this hasn’t yielded the desired result.

Dangote Cement, Africa’s largest manufacturer of cement, achieved a major milestone by becoming the first Nigerian company to cross a 10 trillion naira market capitalization. This milestone was achieved as a result of its stocks gaining during the trading week, thereby increasing the market cap. Recently, companies like Transcorp crossed a trillion-naira market cap.

The Nigerian stock exchange continues to gain more traction, fueled by high-performing stocks like Dangote cement stocks. It was announced recently that Femi Otedola, a major businessman in Nigeria, acquired an undisclosed amount of shares in Dangote Cement. 

This move was a key catalyst in Dangote Cement’s performance this past week. The banking sector wasn’t as dominant as other weeks, as stocks from other companies led the show.

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 22^nd to 26^th January, 2024