Last week saw a surge in the turnover at the FMDQ Securities Exchange, reflecting a notable uptick of 17% to reach $793 million. This surge, indicating resilience amidst market dynamics, reveals interesting insights into Nigeria’s financial landscape.
Experts analyzed the data from the Nigerian Exchange Limited (NGX), pointing out that the financial services sector stood out, dominating the transactions with 1.2 billion shares valued at N11.5 billion across 12,775 deals. This sector’s robust activity contributed significantly, accounting for 59.4% of the total equity turnover volume.
Moreover, the oil and gas industry closely followed suit with 328.7 million shares valued at N3.2 billion in 4,713 deals, while the services industry recorded a turnover of 131.2 million shares worth N539.7 million across 2,263 deals.
Significantly, the trading volume of the top three equities—Japaul Gold and Venture Plc, Fidelity Bank Plc, and Jaiz Bank Plc—made an impact, accounting for 24.11% of the total equity turnover with 488.1 million shares worth N1.9 billion in 3,136 deals.
The overall turnover reached 2.02 billion shares worth N27.7 billion in 32,763 deals, showcasing a contrast to the preceding week, albeit demonstrating a resilient trend amidst market fluctuations.
Positive sentiment continued to influence price movements for the third consecutive week, notably observed in MTN Nigeria (+2.9%), Seplat (+7.4%), and Airtel (+1.1%). This upsurge reflected in the all-share index and market capitalization, culminating in a 0.4% rise to close the week at 71,112.99 and N39.108 trillion, respectively.
Experts weighed in on the market performance, with analysts at Cordros Capital emphasizing the upcoming MPC meeting’s impact on market yields. They anticipate cautious trading due to lingering macroeconomic challenges, advising investors to focus on fundamentally sound stocks.
Similarly, analysts at Vetiva Dealings and Brokerage forecasted restrained trading sessions, as investors explore alternative asset classes amid significant returns observed across various counters this year.
The breakdown of last week’s trading revealed interesting figures in exchange-traded products (ETPs) and bonds, demonstrating a slight increase in activity compared to the previous week.
Additionally, the FMDQ Securities Exchange reported an increase in total turnover for the FX Spot and Derivatives markets. The rise in turnover, driven by the surge in FX Spot turnover, underscored the market’s resilience amid fluctuations, despite a decrease in FX Derivatives turnover.
Furthermore, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate indicated a slight depreciation of the Naira against the dollar by 1.26% to $/₦850.43, compared to $/₦839.74 recorded earlier, outlining the currency’s ongoing market dynamics.
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