Despite the two-day public holidays declared last week on Monday and Tuesday to commemorate the celebration of Eid al-Kabir, the national stock market halted its bearish streak as Airtel Africa (+10.0%) gains raised the All-Share Index and market capitalization by 1.3% to close the week at 52,215.12 and 28.158 trillion naira.
However, all the other indices ended lower, with the exception of the NGX-Main Board, NGX 30, NGX MERI Growth, NGX Oil/Gas, NGX Lotus II indices which appreciated at 3.38%, 0.91 %, 0.30%, 0.02% and 0.60%. percent while the NGX ASeM, NGX Growth and NGX Sovereign Bond indices closed flat.
In addition, a total turnover of 504.3 million shares worth N7.5 billion was recorded in 12,393 trades by investors on the trading floor of the Nigerian Exchange Limited (NGX), against a total of 822.4 million units worth N10.4 billion that changed hands. in 20,643 transactions on July 8, 2022.
The service industry followed with 74.9 million units worth N168.6 million in 954 transactions. The oil and gas industry ranked third with a turnover of 42.7 million units worth N262 million in 798 transactions.
Investdata Consulting Limited’s head of research, Ambrose Omordion, said continued setbacks in the face of low trading volume signal continued indecision and cautious trading as many players sit on the sidelines. In addition, rising inflation rate across the globe and rate hikes are slowing economic growth and pointing to recession.
However, he postulated that despite the current challenges and mixed outlook for many economies, there are still opportunities in certain sectors for medium and long-term investors to hedge against soaring inflation and market declines, just as the half-year earnings season had kicked off.
Analysts at Codros Capital said: “We expect investors to trade cautiously over the coming week as they anticipate the first-half 22 earnings season.
“Nevertheless, we reiterate the need to position ourselves only in fundamentally sound stocks, as the weak macroeconomic environment remains a significant headwind for corporate earnings.”
A further breakdown of last week’s trades showed that a total of 2,414 units of exchange-traded products (ETPs) worth N962,254 were traded last week in 10 trades, compared to a total of 5,099 units worth N267,772.87 that were traded in 17 transactions. during the previous week.
In addition, a total of 747,022 units of bonds worth N775.1 million were traded in 23 transactions, compared to a total of 156,646 units worth N158.7 million traded in 41 trades.
On the price action chart, 20 stocks rose during the week, down from the 31 recorded the previous week. 32 stocks depreciated above the 26 reached the previous week.