The financial services industry dominated, in volume terms, last week’s transactions on the floor of the Nigerian Exchange Limited (NGX).

It led the activity chart with 1.7 billion shares valued at N24.7 billion traded in 14, 277 deals. It contributed 74 per cent to the total equity turnover.

The conglomerates’ industry followed with 98.4 million units of shares worth N379 million in 1,176 deals. The consumer goods industry traded 96.9 million shares worth N2.2 billion in 3,470 deals.

Trading in the top three equities – Access Holdings Plc, United Bank for Africa Plc and Guaranty Trust Holding Company Plc (measured by volume) – accounted for 844 million shares worth N16.3 billion in 5,493 deals, contributing 36.49 per cent to the total equity turnover.

Consequently, a turnover of 2.3 billion shares worth N41.5 billion was recorded in 28,095 deals by investors on the floor of the Exchange, in contrast to 3.4 billion units valued at N41.9 billion that changed hands in 39,764 deals on June 23, 2023.

A total of 5.058 million units of Exchange Traded Products(ETPs) valued at N36.8 million were traded in 105 deals compared with a total of 10.8 million units valued at N105.9 million transacted in 182 deals during the preceding week.

Also, a total of 31,460 units of bonds valued at N32.2 million were traded in 20 deals compared to 106,871 units valued at N106.464 million transacted last week in 26 deals.

On the price movement chart, the bourse continued its uptrend despite the two-day holiday declared by the Federal Government on June 26 and 27, 2023, to commemorate the Eid-el-Kabir celebration as bargain-hunting activities in blue-chip stocks pushed the all-share index (ASI) above the 60,000 psychological mark to close at 60,933.94 points – the highest level since May 2008.

Specifically, the NGX ASI and market capitalisation appreciated by 2.98 per cent to close the week at 60,968.27 and N33.198 trillion respectively.

All other indices finished higher while the NGX ASeM and NGX Sovereign Bond.

The market traded positively in all three trading sessions, driven specifically by interest in Airtel (+6.3 per cent), MTNN (+3.0 per cent), and GTCO (+11.3 per cent) stocks.

Reacting to market performance, analysts at Codros Capital said: “We expect investors to trade cautiously in the week ahead as they anticipate the H1-23 earnings season. Notwithstanding, we reiterate the need for taking positions in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”

Vetiva Dealing and Brokerage said: “The market continues to ride on the recent reforms, as the ASI returned 9.32 per cent m/m, 2.9 per cent higher than May. Going into H2’23, we still expect cautious trading, as investors begin to look forward to half-year results from these companies. In the process, many stocks hit new 52-week highs on the inflow of funds.”

InvestData Consulting Limited said major sectors of the market have continued to witness buying interest on the inflow of funds as investors and traders took positions in low, medium and high-cap stocks in anticipation of a fall in interest rates as the government plans to reform the monetary policy with the recent unification the foreign exchange rates.

According to the firm, with more stocks making new highs on the positive sentiment towards government economic and financial market reforms, it calls for a change in trading strategies and caution, amid the possibility of profit-taking and correction.

However, it added that the development provides better opportunities for investors to hedge against inflation even when fixed-income market yields look attractive and remain mixed in the face of high inflation.

“We expect the bullish sentiment to continue on market-supportive reforms of the government, just as more policy pronouncements and appointments would offer investment direction.

Also, Q2 earnings reporting season draws closer to confirm the real state of the company performance with the release of more March year-end audited accounts.”

Last week, 77 equities appreciated during the week higher than 62 equities in the previous week. 59 equities depreciated at a price higher than 35 in the previous week, 20 equities remained unchanged, lower than the 59 recorded in the previous week.