Heavy transactions in the shares of United Bank for Africa (UBA) FCMB Group Plc and Japaul Oil lifted the volume of shares traded last week as 4.2 billion shares worth N99 billion were recorded in 41,446 deals by investors on the floor of the Nigerian Exchange Limited (NGX).

This volume of shares traded was, however, higher than a total of 5.2 billion units worth N63.4 billion that was exchanged in 57,234 deals on July 14, 2023.

The top three equities accounted for 1.8 billion shares worth N18.2 billion in 4,707 deals, contributing 41.3 per cent to the total equities’ turnover.

On the sectoral activity chart, the financial services industry (measured by volume) led the chart with three billion shares valued at N36.8 billion in 20,079 deals.

The sector contributed 72 per cent to the total equity turnover volume and value respectively. The oil and gas industry followed with 311.172 million shares worth N2.1 billion in 3,473 deals. The third place was the conglomerates’ industry, with a turnover of 180.518 million shares worth N787.392 million in 2,111 deals.

On the price movement chart, the equities market reversed last week’s loss as bargain-hunting activities in Dangote Cement (+5.1 per cent), following the conclusion of its share buyback programme and increased appetite for Tier-1 bank stocks: FBNHoldings (+25.6 per cent), GTCO (+14.2 per cent) and Accesscorp (+22.7 per cent) buoyed the All-share index and market capitalisation by 3.9 per cent to close the week at 65,003.39 and N35.395 trillion respectively pushing the month-to-date and year-to-date returns to +6.6 per cent and 26.8 per cent.

Similarly, all other indices finished higher except NGX ASeM which depreciated by 0.07 per cent.

Reacting to market performance, the Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion said: “The inflow of more half-year earnings reports is expected to drive increased volatility, especially rotation and portfolio reshuffling in value-oriented sectors.

However, this is against the backdrop of an environment where reform policies are driving hyperinflationary pressure in the face of an already heated economy and headwinds ranging from rising inflation, high-interest rate regime and insecurity, among others.

“Already, all eyes are on the expected appointment of economic managers and ministers by this new government to determine the rating of the new government because more policy pronouncements would offer investment direction.

“Also, as more Q2 earnings reports are expected to confirm the real state of listed companies’ performance and attract liquidity, discerning investors have continued to target fundamentally sound companies to protect their portfolios,” he said.

Vetiva Dealing and Brokerage said: “Following the impressive H1 results from FBN Holdings where profit after tax jumped by 231 per cent to ₦187.2 billion, we saw investors bid heavily in the sector, as 13 banking stocks recorded price appreciations ranging from 8.79 per cent to 10 per cent today (Friday). We expect the positive momentum to continue in that sector at the start of the week before profit-taking activities begin, while other sectors trade mixed.”

Cordros Capital said: “In the interim, we expect the full swing of the H1, 2023 earnings season to dictate market sentiments and possibly drive positive performance as investors hunt for bargains in fundamentally sound stocks with a consistent history of interim dividend payments.

“In addition, we believe investors will closely watch the outcome of the MPC meeting scheduled to hold next week to gain further clarity on the movement of yields in the FI market. Overall, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.”

Further breakdown of last week’s transactions showed that a total of 17,963 units of Exchange Traded Products (ETPs) valued at N1.7 million were traded this week in 66 deals compared with a total of 3.562 million units valued at N96.268 million transacted in 110 deals during the preceding week.

Also, 150,193 units of bonds valued at N158.210 million were exchanged in 23 deals compared with a total of 20,386 units valued at N21.934 million transacted last week in 14 deals.

Meanwhile, the NGX has announced the reclassification of Fidelity Bank Plc from small-price stock to medium-price stock.

According to the exchange, rule 15.29 of the rulebook of the Exchange, 2015 (Dealing Members’ Rules) notes that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock.

NGX noted that Fidelity Bank Plc traded above the N5 mark on 20 February 2023 and has remained above the N5 mark up until the close of business on 30 June 2023, an indication that the bank has been trading above N5 for at least four months in the last six months hence should be reclassified from small price stock to medium price stock.

“Rule 15.29 of the Rulebook of The Exchange, 2015 (Dealing Members’ Rules) notes that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock.

“According to NGX, Fidelity Bank Plc. traded above the N5 mark on 20 February 2023 and has remained above the N5 mark up until close of business on 30 June 2023,” the statement said.