NGX: Turnover drops 66% as investors trade N139bn in equities

Trading activity on the Nigerian Exchange Limited (NGX) weakened sharply last week, with equity turnover falling by about 66 per cent to N139.05 billion as investors reduced the volume of shares traded.

The Exchange recorded 5.359 billion shares in 261,869 deals during the week ended August 7, compared with 5.119 billion shares worth N404.762 billion traded in 285,223 deals in the previous week. The value of transactions therefore fell by about N265.7 billion week-on-week, despite a slight increase in the volume of shares traded.

Despite the sharp decline in turnover value, the NGX All-Share Index (ASI) rose marginally by 0.12 per cent to close at 245,573.60 points, while market capitalisation increased to N158.513 trillion. The index had closed the previous week at 245,283.68 points.

The modest gain in the benchmark index came amid negative market breadth, with 63 equities recording price declines against 26 gainers, while 58 stocks remained unchanged. This compared with 56 decliners and 33 gainers in the previous week. The performance reflected stronger buying interest in selected banking and consumer goods stocks, which offset declines across several other sectors.

The NGX Banking Index gained 2.33 per cent during the week, making it the best-performing sectoral index. The index was supported by gains in FCMB Group Plc, First HoldCo Plc and Access Holdings Plc. The Consumer Goods Index also rose by 1.97 per cent.

First HoldCo was among the strongest large-cap gainers, rising 12.23 per cent from N129.55 to N145.40. FCMB Group gained 13.10 per cent to N12.95, while Access Holdings was also among the banking stocks attracting buying interest during the week.

AVA Capital Plc recorded the biggest weekly price gain, rising 33.33 per cent from N8.25 to N11.00. Fortis Global Insurance Plc gained 11.11 per cent, while Linkage Assurance Plc rose 10.63 per cent. Eterna Plc and Caverton Offshore Support Group Plc each gained 10 per cent.

The gains were, however, outweighed in breadth by significant declines in several stocks. Thomas Wyatt Nigeria Plc fell 26.71 per cent, Trans-Nationwide Express Plc declined 23.76 per cent, while Critical Minerals Financing Corp Plc dropped 22.68 per cent.

Ecobank Transnational Incorporated fell 18.94 per cent, while Consolidated Hallmark Holdings Plc and Sovereign Trust Insurance Plc each declined by about 16.5 per cent. Multiverse Mining and Exploration Plc also lost 16.47 per cent during the week.

Sector performance was similarly mixed. The Insurance Index recorded the steepest decline, falling 3.31 per cent, while the Consumer Goods Index gained 1.97 per cent. The Industrial Goods Index declined 0.17 per cent and the Oil and Gas Index fell 0.03 per cent.

The Financial Services Industry remained the dominant contributor to trading activity, accounting for 3.469 billion shares worth N73.013 billion in 117,509 deals. It represented 64.73 per cent of total equity turnover volume and 52.51 per cent of turnover value. The Oil and Gas Industry followed with 1.023 billion shares worth N18.900 billion, while the ICT Industry recorded 232.368 million shares valued at N14.624 billion.

The market’s year-to-date return stood at 57.81 per cent at the end of the week, despite the mixed performance across individual equities and sectors.