NSE transactions’ volume rises by N36 billion, financials lead

Analyst tasks investors on cautious investment decision

Heavy transactions in the shares of some companies, especially First City Monument Bank (FCMB) Group, and Transnational Corporation of Nigeria (TRANSCORP), last week lifted the volume of shares traded, as a turnover of a turnover of 2.170 billion shares worth N39.087billion were recorded in 24,657 deals by investors on the floor of the Exchange.

This volume of shares traded, was, however higher than a total of 2.018 billion units valued at N21.740billion exchanged in 25,496 deals during the week ended February 23.Specifically, at the end of last week’s transactions, trading in the top three equities namely – FCMB Group, TRANSCORP, and Cement Company of Northern Nigeria Plc accounted for 617.511 million shares worth N4.086billion in 2,090 deals, contributing 28.46 per cent to the total equity turnover volume.

Analysts at Invest data Consulting, said there will be oscillating equity prices as a result of profit taking, and disappointment in some results this month.
According to the Chief Research Officer of the firm, Ambrose Omodion, earnings from blue chip companies may strengthen market fundamentals if they beat expectations.


“As investors are reshuffling portfolio to invest in some equities with strong fundamentals, high dividend yield, and possibility of bonus, we should expect stock prices to be in the upward direction.“We must however note that market outlook for the coming months are dicey, this being a pre-election year in a market dominated by foreign and institutional investors. Invest wisely, using dates, bids, offers, and volume when taking decisions.

“Here you have to combine your fundamentals and technical analysis tools to boost your chance of trading and investing profitably, while protecting your capital.
 “Managing risk and protecting capital at this point is very important, so you will be able to determine when to buy or sell by watching the stocks and the market, using technical analysis. More importantly, let numbers emanating from companies and dates guide you into profitable investment,” he added.

Further review of last week’s trading showed that the financial services industry dominated in volume terms with 1.534 billion shares valued at N17.670billion traded in 15,208 deals; thus contributing 70.69 per cent to the total equity turnover volume.

The industrial goods industry followed with 200.405 million shares worth N6.436billion in 1,097 deals.The conglomerates industry ranked third with a turnover of 188.097 million shares worth N489.453million in 998 deals.The NSE All-share index, and market capitalisation appreciated by 0.72 per cent and 0.82 per cent to close the week at 42,876.23 and N15.403trillion respectively.

Similarly, all other indices finished higher during the week with the exception of the NSE ASeM, NSE Banking, and NSE Pension Indices that depreciated by 1.14 per cent, 0.59 per cent, and 0.09 per cent respectively.

Also traded during the week were a total of 50,547 units of Exchange Traded Products (ETPs) valued at N4.593million executed in 12 deals, compared with a total of 111,794 units valued at N1.806million transacted last week in 10 deals.

A total of 6,574 units of Federal Government Bonds valued at N6.332million were traded this week in 31 deals, compared with a total of 9,963 units valued at N10.057million transacted last week in 21 deals.

About 38 equities appreciated in price during the week, higher than 23 the previous week, while 45 equities depreciated in price, lower than 54 equities during same period. Also, 89 equities remained unchanged lower than 95 equities recorded a week earlier.