May 21, 2024/Futureview Research
Kindly click here to download the Weekly Stock Recommendations from our Research team for this week 20th – 24th May, 2024.
The Nigerian equities market kicked off the trading week with a bearish trend due to investor focus on the FGN Bond auction early in the week. The benchmark NGX All Share Index (NGXASI) dropped by 53 basis points to 97,708.74 points, driven by profit-taking in key stocks. This negative trend persisted throughout the week, with the NGX closing in the red for four out of five sessions. Despite slight losses of 24 basis points and 13 basis points on Tuesday and Wednesday respectively, the market saw a rebound on Thursday as the NGXASI rose by 84 basis points. However, this positive momentum was short-lived, as the NGX concluded the week with a 3 basis points decline on Friday, settling at 98,125.73 points. This resulted in a week-on-week decrease of 0.11% in the NGX All Share Index, while the year-to-date return stood at 31.23%.
A total turnover of 1.65 billion shares worth N42.68 billion in 38,123 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.19 billion shares valued at N50.67 billion that exchanged hands last week in 45,277 deals.
The Financial Services Industry (measured by volume) led the activity chart with 979.48 million shares valued at N16.65 billion traded in 20,708 deals; thus contributing 59.30% and 39.01% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 239.83 million shares
worth N2.88 billion in 2,178 deals. The third place was the Consumer Goods Industry, with a turnover of 148.69 million shares worth N3.53 billion in 4,757 deals.
Trading in the top three equities namely Custodian Investment Plc, Guaranty Trust Holding Company Plc and Access Holdings Plc (measured by volume) accounted for 500.34 million shares worth N11.77 billion in 6,551 deals, contributing 30.29% and 27.57% to the total equity turnover volume and value respectively.
The sectorial performance across the week was bearish as four (4) out of five (5) sectors under our coverage closed in the red zone. The Oil & Gas sector (-6.5% w/w) led the losers following profit taking in SEPLAT (-10.00% w/w) and ETERNA (18.32% w/w). Trailing behind were the Banking (-5.31% w/w), Insurance (-1.29% w/w) and Consumer Goods sectors owing to share price decline in UBA (-9.7% w/w), ZENITHBANK (-3.5% w/w), NEM (-18.4% w/w), AIICO (-3.9% w/w), DANGSUGAR (-11.1% w/w) and PZ (-22.2% w/w). On the other hand, the Industrial was the lone advancer, gained 0.01% owing to gain recorded in WAPCO (+0.3% w/w).
Twenty-eight (28) equities appreciated in price during the week lower than forty (40) equities in the previous week. Fifty-one (51) equities depreciated in price higher than thirty-seven (37) in the previous week, while seventy-six (76) equities remained unchanged, lower than seventy-seven (77) recorded in
the previous week. The top gainers for the week included INTENEGINS, gained 11.49%, followed by MCNICHOLS (+9.89%)
and CUSTODIAN (+9.68%). Conversely, the top decliners were PZ (-22.16%), NEM (-18.36%), and ETERNA (-18.32%).
Our Expectation for this Week
Stock Recommendation
Tuesday, 21st May 2024
This week, we anticipate cautious trading among equity investors as they await the outcome of the MPC meeting. We suggest that investors concentrate on fundamentally strong stocks.
Also, see below the main events of the week from 20th – 24th May, 2024.
