In the just concluded week, the general performance of the Nigerian Exchange Limited, NGX PLC was negative as the equities and bond markets both declined at the close of this week’s Trading activities, with expectation of the Exchange-Traded Product (ETP) which improved on its last week’s performance.
EQUITY
The equities market could not consolidate the gains recorded in the prior week as profit-taking dominated activities in the just concluded week.
Specifically, the NGX All-Share Index and Market Capitalization depreciated by 0.06% to close the week at 42,014.50 and N21.926 trillion respectively.
Analysis according to Cordros Asset management company states “We observed investors took advantage of the gains recorded over the past month in booking profit on bellwether stocks.
Notably, profit-taking in UNILEVER NIGERIA PLC. which fell 14.4%, LAFARGE AFRICA PLC, which declined 5.6%, ECOBANK TRANSNATIONAL INCORPORATED, which fell 5.1% and FLOUR MILLS NIG. PLC, which declined 2.7%, drove the weekly loss.
Consequently, the Month-to-Date and Year-to-Date return moderated to -0.1% and +4.3%, respectively. Activity levels mirrored the market’s broad-gauge decline, as trading volumes and value declined by 52.4% week-on-week and 64.2% week-on-week, respectively.”
Hence, the total turnover of 1.428 billion shares worth N12.373 billion in 23,987 deals were traded in the just concluded week by investors on the floor of the Exchange, in contrast to a total of 3.001 billion shares valued at N34.547 billion that exchanged hands in the prior week in 25,932 deals.
Trading in the top three equities namely FBN Holdings Plc, Sterling Bank Plc and United Bank for Africa Plc, when measured by volume, accounted for 402.924 million shares worth N3.063 billion in 3,208 deals, contributing 28.22% and 24.76% to the total equity turnover volume and value respectively.
Twenty-three (23) equities appreciated in price in the just concluded week, lower than forty-seven (47) equities in the previous week. Forty-three (43) equities depreciated in price, higher than twenty-five (25) equities in the previous week, while ninety (90) equities remained unchanged higher than eighty-four (84) equities recorded in the prior week.
All other indices finished lower with the exception of NGX Main Board, NGX Insurance, NGX MERI Growth, NGX Lotus II and NGX Industrial Goods indices which appreciated by 0.32%, 0.99%, 0.09%, 0.15% and 0.88% respectively, while the NGX ASeM Index closed flat.
The Financial Services Industry, when measured by volume, led the activity chart with 1.010 billion shares valued at N7.992 billion traded in 12,208 deals; thus contributing 70.75% and 64.60% to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 94.729 million shares worth N207.829 million in 878 deals. The third place was Consumer Goods Industry, with a turnover of 62.779 million shares worth N1.326 billion in 3,814 deals.
Exchange-Traded Product (ETP)
In the just concluded week, a total of 252,857 units valued at N3.830 million were traded in 31 deals compared with a total of 186,360 units valued at N3.251 million transacted in the prior week in 16 deals.
BONDS
A total of 32,626 units valued at N33.332 million were traded in the just concluded week in 16 deals compared with a total of 47,577 units valued at N50.350 million transacted in the week before, in 32 deals.
Meanwhile, the Nigerian Exchange Limited, NGX has announced the change in the reclassification of Okomu Oil Palm Plc from the Medium-Priced Stock Group to the High-Priced Stock Group, in line with the NGX’s Pricing Methodology framework.
According to the NGX, this reclassification “necessitates the attendant change in the tick size change from N0.05 kobo to N0.10 kobo, in line with Rule 15.29: Pricing Methodology, Rulebook of The Exchange, 2015 (Trading License Holders’ Rules).”
Equity securities of Quoted Companies on The Exchange (NGX) are classified into three Stock Price Groups or Categories – High-Priced, Medium Priced, and Low-Priced Stocks, based on their market price.
In this regard, securities must have traded for at least four out of the most recent six month period within a Stock Price Group’s specified price band to be classified into the category.
“Accordingly, a review of Okomu Oil Palm Plc stock price and trade activities over the most recent six-month period provides the basis for reclassifying the security from the Medium-Priced Stock Group to the High-Priced Stock Group.”
Okomu Oil Palm Plc stock price appreciated above the N100 price level on June 8, 2021 and traded above N100 up till close of business on October 22, 2021, indicating that Okomu Oil Palm Plc stock price has traded above N100 in at least 4 months out of the last 6 months.
Bilkisu Pai
