Through Chinwendu Obienyi
Despite With the gains made by investors in the Nigerian stock market last week, analysts said they expect bearish sentiments to dominate market transactions today.
This comes after bullish momentum in the local stock market gathered momentum as the All-Share Index (ASI) broke through 40,000 points to close at 40,221.17 points – the highest level since on February 21, 2021 while the market capitalization increased by 656 billion naira to close at 20.955 billion naira.
The gains, according to market report data from Nigerian Exchange Limited (NGX), showed investor buying interest in Dangote Cement (+14.3 percent), FBN Holdings (+7.3 percent) percent), Nestlé (+5.7 percent) percent), Flourmill (+2.8 percent), Okomu oil (+2.6 percent) and GTCO (+2.2 percent) pushed up the 3.2 percent UPS.
Meanwhile, a total turnover of 2.187 billion shares worth N16.183 billion in 14,377 deals was traded last week by investors, compared to a total of 1.290 billion shares of worth 13.921 billion naira which traded hands the previous week in 16,745 trades.
The financial services industry (measured by volume) dominated the activity chart with 778.434 million shares valued at 5.591 billion naira traded in 7,183 transactions; thus contributing 35.60 per cent and 34.55 per cent respectively to the volume and value of the total turnover of the shares.
The services industry followed with 775.712 million shares valued at 2.909 billion naira in 416 transactions while the consumer goods industry recorded sales of 448.662 million shares a worth 3.999 billion naira in 2,257 transactions.
Trading in the top three stocks, namely Transcorp Hotels Plc, Honeywell Flour Mill Plc and FBN Holdings Plc (measured by volume), represented 1.494 billion shares worth N6.944 billion in 1,017 transactions, contributing to 68.33% and 42.91% in total equity. volume and value of turnover respectively.
Commenting on the week’s performance, Cordros Capital said he expects bears to dominate market performance this week as investors cash in on the gains in flagship stocks.