In a turn of events, the Nigerian stock exchange encountered a dip in performance compared to the previous week. However, since the year’s inception, the exchange has undergone a notable resurgence in both stock value and volume.
This week witnessed a trading activity of 5.16 billion shares, amounting to N77.52 billion (approximately USD 86.98 million) across 78,679 deals. Analyzing these figures in juxtaposition to the prior week’s data reveals a 9.8% decline in the overall volume of shares traded and a 12.7% reduction in the value of shares transacted. Stay tuned as we unravel the dynamic fluctuations shaping the Nigerian stock market landscape.
Stock price and volume analysis
Regarding trading volume, TRANSCORP extended its lead from last week into this week, with 443 million shares traded. TRANSCORP shares grew massively in 2023, and they recently reached the one trillion-naira market cap on the Nigerian stock exchange.
JAIZBANK claimed the second spot for the week, with 372 million shares traded in total. AIICO, a major insurance company in Nigeria, claimed the third spot for the week, with 274 million shares traded in total.
TOP 10 COMPANIES IN TRADING VOLUME
Top 10 companies in trading volume (in 1,000,000 units)
In terms of trading value, TRANSCORP’s dominance on the stock exchange this week was further solidified as it emerged as the company with the highest value of traded shares. TRANSCORP traded shares worth N7.78 billion (approximately USD 8.73 million).
ZENITHBANK comes next with N6.30 billion (approximately USD 7.07 million). NASCON, a major producer of salt in Nigeria, emerged third for the week with N6.00 billion (approximately 6.72 million).
Nigeria’s top-tier banks failed to exert a major dominance this week, especially on the top ten companies for both volume and value of trading, as they were outclassed by companies from other sectors.
TOP 10 COMPANIES BY TRADING VALUE
Top 10 companies by trading value (in 1,000,000 naira)
Daily trading analysis
In terms of trading volume, a triangular pattern similar to that observed from last week is present this week, as trading starts to build from the first day of the week, crescendos at the middle, and drops down by the end of the week.
Monday, the first day of trading, recorded the lowest volume of shares traded, with 808 million shares traded in total. A 32% increase was recorded by Tuesday, as 1.07 billion shares were traded in total. The largest volume of shares for the week was traded on Wednesday, as 1.3 million shares were traded in total. Trading volume declined progressively to Friday as 844 million shares were traded in total.
Daily volume of shares traded (in 1,000,000 units)
In trading value, Monday recorded the lowest shares for the week; shares worth N11.03 billion (approximately USD 12.38 million) were traded in total on the first day of trading.
On Tuesday, there was a 43% increase as shares worth N15.77 billion (approximately USD 17.69 million) were traded. The largest value of shares for the week was traded on Thursday, as shares worth N19.29 billion (approximately USD 21.65 million) were traded in total. A 22% decrease was recorded on Friday, the last day of trading for the week, as shares worth N15.05 billion (approx. USD 16.88 million) were traded.
Daily value of shares traded (in 1,000,000 naira)
TOP PRICE GAINERS
TOP PRICE DECLINERS
The Nigerian stock exchange may have experienced a decline in performance this week, but it is still healthy and buoyant in its current run from the start of the year.
This week, the Nigerian stock market beat other markets around the world to emerge as the best-performing stock exchange in the world from the second-best position it emerged in last week as its All-Share index (ASI) increased to 90,063.27 points. This is a testament to the massive potential of the Nigerian stock exchange.
On listings, Odu’a Investment Company has set plans in motion to be listed on the Nigerian stock exchange in the coming weeks. Odu’a has investments in technology, real estate, information technology, and food, among others.
As the Nigerian stock exchange continues to thrive, companies from different sectors of the economy will seek to be listed on the exchange.
Access Bank has set plans in motion to acquire Finance Trust Bank, a bank based in Uganda. Last week, it was reported that Access Bank had acquired Atlas Mara, a Zambian bank. Access Bank aims to penetrate new territories and markets, spreading its tentacles far and wide.
Access Bank is a top-performing company on the Nigerian exchange; moves like this may have a ripple effect on the stock market.
The recent upsurge in the performance of the Nigerian stock exchange market has increased the spotlight on the Nigerian economy positively. In recent times, issues like the unstable Naira/Dollar exchange rate, the rate of inflation, and the exit of some foreign companies have brought negativity to the Nigerian economic scene.
The stock market performance has increased optimism about the success of the economic policies put in place by the current administration.
Global Market Summary
The Nigerian stock exchange emerged as the best-performing stock market in the world, beating more established and recognized names like the New York Stock Exchange, Nasdaq, Hong Kong Stock Exchange, and others.
In the preceding week, it was the second-best-performing stock market, only surpassed by its Argentine counterpart. This week, as its All-Share index crossed 90,000 points, it beat others to emerge the best for the week.
A notable example is the New York Stock Exchange, which is the biggest stock exchange in the world, with a total market cap of over $25 trillion and more than 2000 listed companies. Nigeria’s figure pales in comparison with $56.96 million and 155 registered companies, but its performance for two weeks running has been dominant on its American counterpart.
Globally ongoing tensions between Russia and Ukraine, the inflation rate, and other factors have strained economic growth and development, which in turn affect stock exchanges worldwide.
Key stock markets like Hong Kong and the Saudi Arabian Stock Exchange performed negatively during the week, with the Hong Kong exchange experiencing a run of negative performance in recent times. The Nigerian Stock Exchange’s recent run of positive gains in recent weeks has been touted as a reactionary effect of the economic reforms in Nigeria.
Banks, notably the top-tier banks in Nigeria, have been major drivers of this recent resurgence and milestone. A good move by the economic team would be to leverage the current situation to gain more ground as far as the Nigerian stock exchange is concerned.
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.
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