Heavy transactions in the shares of some banks lifted the volume of shares traded last week, as a turnover of 2.9 billion shares worth N47.4 billion was recorded in 44,654 deals by investors on the floor of the exchange. It was higher than 2.64 billion units valued at N45.5 billion that changed hands in 44,189 deals the previous week.

Specifically, the financial services industry (measured by volume) led the activity chart with 1.9 billion shares valued at N26.4 billion traded in 21,707 deals, thus contributing 66.7 per cent to the total equity turnover. The oil and gas industry trailed with 281.3 million shares worth N5.3 billion in 4,423 deals.

The conglomerate industry ranked third with a turnover of 280.6 million shares worth N1.8 billion in 3,079 deals. Trading in the top three equities – United Bank for Africa Plc, Transnational Corporation Plc and Access Holdings Plc (measured by volume) – accounted for one billion shares worth N13.6 billion in 9,733 deals, contributing 34.9 per cent to the total equity turnover volume.

A total of 16,562 units valued at N2.7 million were traded in 73 deals compared with a total of 5.8 million units valued at N65.9 million transacted in 101 deals during the preceding week.

Also, 94,257 units valued at N103.3 million were traded in 33 deals compared with a total of 138,031 units worth N148 million transacted in 25 deals during the preceding week.

On the price movement chart, the domestic equities market closed the week on a bearish note, as the all-share index and market capitalisation depreciated by 1.1 per cent to close the week at 67,395.74 and N36.886 trillion respectively, causing the year-to-date return to decline to 31.5 per cent (previously 33 per cent).

Similarly, all other indices finished lower except NGX Insurance, NGX MERI Growth and NGX Growth which appreciated by 0.46 per cent, 0.55 per cent and 4.15 per cent respectively while the NGX ASeM index closed flat.

Thirty-two equities appreciated during the week lower than 52 equities in the previous week. Fifty-three equities depreciated higher than 35 in the previous week, while 70 equities remained unchanged, higher than 68 recorded in the previous week.

Analysts at Cordros Capital said: “We anticipate cautious trading on the bourse this week in the absence of strong positive triggers to boost investors’ appetite for risky assets.

“Overall, we reiterate that investors should seek trading opportunities in fundamentally sound stocks as the weak macroeconomic environment remains a significant headwind to corporate earnings.”

Vetiva Dealing and Brokerage said: “With the positive sentiments gradually wearing off in the banks, the market is on the lookout for its next catalyst. We expect mixed trading next week, as investors mull over the latest inflation data, with headline inflation surpassing our estimate by 47bps to print at 25.80 per cent.

Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion, said the pullback witnessed currently on the exchange is creating buying opportunities for discerning investors amidst economic reforms of the new government, just as economic managers hit the ground running, a situation expected to offer direction to investors.

“We note that discerning investors have continued to target fundamentally sound companies and defensive stocks to protect their portfolios.

“Any pullback at this point may add more strength to upside potentials. As such, investors should take advantage of price rallies to take profit, while also looking at trends and events within and across the globe”.