In a dynamic week for the Nigerian equities market, the consumer goods sector emerged as the frontrunner, notching an impressive 9.6% gain, as reported by the Nigerian Exchange Limited (NGX). The sector’s exceptional performance was fueled by substantial price upticks in key players, including BUA Foods, Unilever, Cadbury, and Flour Mills.
Following closely was the banking index, marking a notable 5.10% growth, spearheaded by robust contributions from GTCO, FCMB, and FBNH. However, the oil and gas index faced headwinds, witnessing a -1.61% decline, primarily influenced by a sell-off in Total Energies Marketing Nigeria Plc.
The bullish momentum extended to key equities such as BUA Foods, Dangote Cement, TransNational Corporation of Nigeria, and GTCO, resulting in a commendable 4.24% uptick in both the All-Share Index and the market capitalization of listed equities. The week concluded with figures standing at 83,042.96 and N45.442 trillion, respectively, with the Year-to-Date gain reaching +11.1%.
Market activities demonstrated heightened investor interest, with a total turnover of 5.7 billion shares valued at N88.8 billion recorded in 80,064 deals. This marked a substantial increase compared to the previous week, indicating a robust engagement with the equities market.
The financial services industry took the lead on the activity chart, contributing 67.7% to the total equity turnover volume. The sector witnessed a turnover of 3.9 billion shares valued at N53.4 billion, followed by the conglomerate industry with 725.5 million units worth N9.9 billion. The oil and gas industry secured the third spot with a turnover of 223.2 million shares valued at N2.7 billion.
Top-performing equities such as Transnational Corporation Plc, FCMB Group Plc, and Fidelity Bank Plc collectively accounted for 24.1% of the total equity turnover, with 1.4 billion shares worth N17.7 billion.
While the equities market experienced mixed sentiment and profit-taking, analysts from Investdata Consulting urged investors to remain vigilant, citing ongoing portfolio adjustments and the anticipation of unaudited Q4 2023 numbers. They emphasized the importance of leveraging price corrections while approaching investment decisions with caution.
Simultaneously, the FMDQ Securities Exchange reported a substantial 114.51% increase in the Foreign Exchange (FX) Spot and Derivatives market’s total turnover for the week, reaching $654.3 million. The surge was attributed to significant increases in FX Spot and FX Derivatives turnover, particularly driven by FX Forwards. The average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate reflected a 3.65% depreciation against the dollar, standing at $/₦944.54.
Credit: The Guardian