By Chinwendu Obienyi and Chukwuma Umeorah
Despite profit-taking activities on the floor of Nigeria’s stock market, activity level in the total traded volume and value of shares by investors surged at 3.680 billion shares worth N57.892 billion transacted in 40,726 deals at the close of business last week.
This is against the total of 1.804 billion shares valued at N52.040 that exchanged hands in the previous trading week in 38,550 deals.
The market opened for four trading days this week as the Federal Government of Nigeria declared Friday March 29, 2024 and Monday April 1, 2024 as Public Holidays to commemorate Easter celebration.
However, at the close of trading activities for the week, the domestic equities market recorded its third consecutive weekly loss as investors contended with the potential implications of the recently announced bank recapitalization plans by the Central Bank of Nigeria (CBN). Notably, significant selling pressure was evident across tier-1 banking stocks, with FBNH (-14.2 per cent), GTCO (-8.6 per cent), AccessCorp (-7.8 per cent), and Zenith Bank (-4.5 per cent) recording declines.
Furthermore, profit-taking activities in MTNN (-2.2 per cent), contributed to the overall market downturn. Consequently, the All-Share index (ASI) declined by 1.08 per cent week-on-week (w/w), leading to a moderation in the Year-to-Date return to +38.3 per cent. Similarly, market capitalisation fell by N623 billion from N59.121 trillion to N58.498 trillion.
Reflecting the prevailing market sentiments, the Banking (-6.7 per cent) index recorded the most substantial loss, followed by the Insurance (-0.9 per cent) and Industrial Goods (-0.3 per cent) indices. Conversely, the Consumer Goods (+0.9 per cent) index advanced, while the Oil and Gas index closed flat.
Reacting to the market’s weekly performance, market operators noted that they expect to see more of a choppy trading pattern on resumption of proceedings at the stock market while adding that investors would trade cautiously.
According to them, investors’ sentiments to be influenced by developments in the macroeconomic landscape and corporate actions in the short term.
Meanwhile, 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; thus contributing 78.29 per cent and 79.81 per cent to the total equity turnover volume and value respectively.
The Services Industry followed with 479.156 million shares worth N2.282 billion in 2,142 deals while the Conglomerates Industry, recorded a turnover of 123.591 million shares worth N1.651 billion in 2,849 deals.
Trading in the top three equities namely Abbey Mortgage Bank Plc, Tourist Company of Nigeria Plc and Zenith Bank Plc (measured by volume) accounted for 2.175 billion shares worth N20.667 billion in 2,594 deals, contributing 59.10 per cent and 35.70 per cent to the total equity turnover volume and value respectively.