The consumer goods emerged as the best-performing index at the end of last week’s transactions on the equities sector of the Nigerian Exchange Limited (NGX) with 9.6 per cent gain.

The sector’s improved performance was buoyed by price appreciation in BUA Foods (+341), Unilever (+994 per cent), Cadbury (+982) and Flour Mills (+411 per cent).

Following the consumer goods index last week was the banking index with 5.10 per cent driven by GTCO (+289 per cent), FCMB (+233 per cent) and FBNH (+163 per cent).

However, the oil and gas index was the worst performing last week, shedding -(1.61 per cent). The losses were occasioned by sell-off in Total Energies Marketing Nigeria Plc (-10.00 per cent).

Consequently, the increased investors’ appetite in BUA Foods (+15.5 per cent), Dangote Cement (+7.7 per cent), TransNational Corporation of Nigeria (+17.9 per cent) and GTCO (+8.9 per cent) lifted the All-Share Index and market capitalisation of listed equities by 4.24 per cent to close the week at 83,042.96 and N45.442 trillion respectively, as the Year-to-Date gain rose to +11.1.per cent.

On the activity chart, a total turnover of 5.7 billion shares worth N88.8 billion was recorded in 80,064 deals by investors on the floor of the exchange.

This volume of shares traded, however higher than in a total of 3.32 billion units, valued at N41.8 billion that changed hands in 46,994 deals on January 5, 2024.

The financial services industry (measured by volume) led the activity chart with 3.9 billion
shares valued at N53.4 billion traded in 39,913 deals; thus contributing 67.7 per cent to the total equity turnover volume.

The conglomerate’s industry followed with 725.5 million units worth N9.9 billion in 7,658 deals. The oil and gas industry ranked third with a turnover of 223.2 million shares worth N2.7 billion in 4,464 deals.

Trading in the top three equities namely Transnational Corporation Plc, FCMB Group Plc and Fidelity Bank Plc (measured by volume) accounted for 1.4 billion shares worth N17.7 billion in 12,442 deals, contributing 24.1 percent to the total equity turnover.

Further, a total of 75,890 units of Exchange Traded Products (ETPs) valued at N33.5 million were recorded in 334 deals compared to a total of 391,760 units valued at N8.45 million transacted last week in 140 deals.

A total of 51,246 units of bonds, valued at N49.9 million were traded in 33 deals compared with a total of 74,677 units valued at N71.6 million transacted last week in 32 deals.

Analysts at Investdata Consulting said: “We expect mixed sentiment and profit taking to continue, as bargain hunters and ongoing portfolio persist ahead of unaudited Q4 2023 numbers as market players repositioned in the stocks that pulled back ahead of their earnings reports, especially the banking tickers and others with the history of dividend payment ahead of the NGX peak of the corporate earnings reporting season where most of the companies will announce their full year 2023 dividend payout.

“Also, all eyes are still on the fiscal and monetary authorities that are yet to give a clear direction of where the Nigerian economy is heading, as happenings at the global economic arena, especially geopolitical tensions.

“There is also the fear of a recession among others that will continue to influence investment decisions while driving volatility.”

However, he urged investors to take advantage of price correction, even as they monitor trends and events across the domestically and across the globe.

Vetiva Dealing and Brokerage said: “The market returned 4.24 per cent w/w compared to prior week’s 6.54 per cent, as we saw some profit-taking action this week. Also, given the strong close in the consumer goods sector, we are likely to see a price correction in that space at the start of trading next week, while other sectors trade mix.”

75 equities appreciated during the week lower than 88 equities in the previous week. 23 equities depreciated higher than 17 in the previous week, while 57 equities remained unchanged, higher than the 50 recorded in the previous week.

Meanwhile, FMDQ Securities Exchange Foreign exchange (FX) Spot and Derivatives market’s total turnover for the week-ended January 12, 2024, was $654.3 million, representing an increase of 114.51 per cent ($349.32 million) from $305.05 million reported for the week-ended January 5, 2024.

According to the exchange, the week-on-week (WoW) increase in the total turnover was jointly driven by the 109.2 per cent ($330.91 million) and 868.40 per cent ($18.41 million) increases in FX Spot and FX Derivatives turnover, respectively.

The exchange noted that the WoW increase in FX derivatives turnover was solely driven by the 868.4 per cent ($18.41 million) increase in FX Forwards turnover, whilst there were no trades executed in both the Exchange Traded FX Futures and Cleared Naira-Settled Non-Deliverable Forwards (Cleared USD/NGN NDFs) markets.

In the FX Spot market, the total value of transactions for the week ending on January 12 was $633.84 million, representing an increase of 109.2 per cent ($330.91 million) from the value of transactions executed in the week ending on January 5 ($302.93 million).

Within the period, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was $/₦944.54, compared to $/₦910.08 recorded in the week-ended January 5, 2024, representing a depreciation of the naira against the dollar by 3.65 per cent ($/₦34.46).