Three bank stocks – United Bank for Africa Plc (UBA), FBN Holdings Plc and Guaranty Trust Holding Company Plc – (measured by volume) dominated activities in the equities sector of Nigerian Exchange Limited (NGX) last week, contributing 72.3 per cent to activities.

With the contribution, the financial sector maintained its dominance in volume terms with 1.1 billion shares valued at N18.908 billion traded in 19,424 deals, thus contributing 72.27 per cent to the total equity turnover.

On the price movement chart, positive sentiments returned to the local bourse last week as investors re-entered the market, despite profit-taking activities on banking stocks earlier in the week, The improved performance was occasioned by bargain hunting in BUAFoods (+20.8 per cent), Airtel Africa (+10 per cent) and Geregu (+33.3 per cent).

As a result, the NGX All-Share Index and market capitalisation appreciated by 3.79 per cent to close the week at 105,722.78 and N57.85 trillion respectively.

Similarly, all other indices finished higher except NGX CG, NGX Banking, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth, NGX Industrial Goods, NGX Growth and NGX Sovereign Bond, which depreciated by 0.18 per cent, 1.34 per cent, 3.32 per cent, 0.32 per cent, 3.43 per cent, 1.83 per cent, 6.5 per cent and 0.02 per cent with the MTD and YTD returns increasing to +4.5 per cent and +41.4 per cent, respectively.

Specifically, trading in the top three banks accounted for 389.286 million shares worth N11.757 billion in 5,372 deals, contributing 24.96 per cent to the total equity turnover.

Following the banking sector last week was the conglomerate industry with 117 million shares worth N1.5 billion in 2,775 deals. The consumer goods sector ranked third with a turnover of 98.4 million shares worth N4 billion in 6,322 deals.

Overall, the total turnover of 1.6 billion shares worth N36.4 billion was recorded in 42,546 deals by investors on the floor of the Exchange, in contrast to a total of 2.4 billion units valued at N47.9 billion that was exchanged in 54,982 deals on February 9, 2024.

Reacting to market performance, analysts at Cordros Capital said: “In the coming week, we expect sentiments to be determined by the movement of yields in the fixed-income market.

“Also, as we move towards the earnings season, further earnings releases and possible dividend declarations may be the catalysts for another spurt of positive sentiment which supports buying activities on the bourse.”

Investdata Consulting Limited said: “Nigeria’s heightening inflation is more of a structural problem, especially with the worsening depreciation of the Naira, leading to imported inflation and hike in food prices due to the high level of insecurity that has kept farmers away from their farmlands.

“With this high inflation figure, expect a rate hike from the MPC meeting, even as the earnings reporting season enters its peak with dividend expectations, while market players continue to reassess opportunities in the financial market.

“We expect mixed sentiment to continue as players digest the January Consumer Price Index of 29.9 per cent, profit taking and portfolio repositioning ahead of the fixed income market activities next week and audited corporate earnings with dividend expectations.

“This is amidst the volatility and upcoming policy meeting, while pullback at this point will add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”

A total of 639,482 units of exchange-traded products (ETPs) valued at N638.5 million were traded last week in 24 deals compared with a total of 69,544 units valued at N67 million transacted last week in 35 deals.