Corporate earnings fuel sale volume as investors stake N27.5bn in one week

By Chinwendu Obienyi

Amid impressive 2022 corporate earnings, investors staked N27.500 billion in 3.79 billion shares in 20,333 deals as the domestic stock market consolidated gains recorded in the previous week.

Daily Sun analysis of the performance of the market revealed that bargain hunting dominated activities during all trading sessions of the week. Hence, the All Share Index (ASI) rose by 2.95 per cent to close at 54,202.58 points.

Notably, buying interests in MTNN (+5.7 per cent), Geregu (+36.9 per cent), and Seplat (+11.8 per cent) drove the weekly gain, and partly propelled the market to Month-to-Date (MTD) and Year-to-Date (YTD) returns of +1.8 per cent and +5.8 per cent, respectively while market capitalization grew by N847 billion from an opening value of N28.681 trillion to close the week at N29.528 trillion.

Activity levels mirrored the overall market barometer, as trading volume and value surged by 399.8 per cent w/w and 101.0 per cent w/w, respectively. Sectoral performance was broadly positive, as the Oil and Gas (+9.2 per cent) index recorded the most significant gain, followed by the Banking (+2.5 per cent), Insurance (+0.3 per cent), and Industrial Goods (+0.1 per cent) indices. On the flip side, the Consumer Goods (-0.4 per cent) index was the sole loser for the week.

A total turnover of 3.789 billion shares worth N27.500 billion in 20,333 deals was traded by investors on the floor of the exchange, in contrast to a total of 756.769 million shares valued at N13.653 billion that exchanged hands last week in 18,248 deals.

The Financial Services Industry (measured by volume) led the activity chart with 3.461 billion shares valued at N7.182 billion traded in 8,978 deals; thus contributing 91.35 per cent and 26.12 per cent to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 78.306 million shares worth N210.522 million in 746 deals while the Consumer Goods Industry, with a turnover of 54.009 million shares worth N1.923 billion in 3,405 deals.

Trading in the top three equities namely Universal Insurance Plc, Guaranty Trust Holding Company Plc and Zenith Bank Plc. (measured by volume) accounted for 3.048 billion shares worth N4.653 billion in 2,674 deals, contributing 80.45 per cent and 16.92 per cent to the total equity turnover volume and value respectively.