Nigeria: Trading Value Soars 292%, Investors Stake N42 Billion on Shares

26 April 2021

The stock market attracted N42.142 billion invested in 1.602 billion shares in 19,507 deals last week.

This was an increase of 292 per cent compared with the N10.759 billion staked on 1.263 billion shares in 19,975 deals the previous week. Equally, the NGX All-Share Index rose 1.27 per cent to close higher at 39,301.82.

The rebound in the market could be linked to investors' renewed appetite for shares boosted by the release of companies' first quarter (Q1) results.

According to analysts, the floor of the NGX would be flooded with more results this week.

"We expect NGX's floor to be flooded with results as the Q1-2021 earnings season commences in full swing. We believe investors will be looking for clues on how corporate earnings will evolve in 2021, given the expected improvement in macroeconomic conditions.

"The local bourse is likely to close positive next week as we expect decent earnings releases across the board to temper selling activities stoked by the rising yields in the FI market. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings," analysts at Cordros Securities stated.

However, analysts at Investdata Consulting, stated that equity market players should invest and be guided by their set investment objectives, especially entry and exit strategies to survive and profit from the expected new trend.

"By so doing, should the Q1 earnings reports and corporate actions fail to impact and support this recovery, a big rotation in sector trends should also guide you, going into the future," they said.

A breakdown of the market turnover showed the Financial Services Industry remained the most traded with 1.029 billion shares valued at N9.188 billion traded in 11,095 deals, thus contributing 64.22 per cent and 21.8 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 215.482 million shares worth N29.855 billion in 566 deals, while the third place was occupied by the Conglomerates Industry, with a turnover of 118.458 million shares worth N675.954 million in 1,088 deals.

Meanwhile, 39 equities appreciated in price during the week, higher than 18 equities in the previous week, while 24 equities depreciated in price lower than 47 equities in the previous week. PZ Cussons Nigeria Plc led the price gainers with 21 per cent, trailed by University Press Plc with 19.6 per cent. Honeywell Flour Mills Plc chalked up 17.6, just as Mutual Benefits Assurance Plc garnered 14.7 per cent. Northern Nigerian Flour Mills Plc and Conoil Plc appreciated by 11.2 per cent and 9.9 per cent respectively.

Conversely, FTN Cocoa Processors Plc led the price losers with 22 per cent, followed by Portland Paints and Products Nigeria Plc with 18 per cent. Union Dicon Salt Plc and Ekocorps Plc shed 18.09 per cent and 10 per cent respectively.

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