Last week, market activities remained low key as investors exercised caution ahead of half-year (H1-2024) earnings releases, with companies entering their close periods. The All-Share Index (ASI) declined slightly by 4 basis points (bps) week-on-week (w/w), as a significant sell-off in MTN Nigeria Communications Plc (MTNN) (-9.3%) impacted overall performance. Consequently, the Year-to-Date (YTD) return settled at +33.8%.
A total turnover of 2.259 billion shares worth N31.166 billion in 42,851 deals was traded by investors in contrast to a total of 2.651 billion shares valued at N49.976 billion traded the previous week in 41,610 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.801 billion shares valued at N22.030 billion traded in 23,112 deals; thus contributing 79.75% and 70.69% to the total equity turnover volume and value respectively. The Oil and Gas Industry followed with 121.001 million shares worth N1.771 billion in 3,124 deals.
The third place was the Conglomerates Industry, with a turnover of 90.713 million shares worth N1.081 billion in 2,277 deals. Trading in the top three equities namely Fidelity Bank Plc, Universal Insurance Plc and Guaranty Trust Holding Company Plc (measured by volume) accounted for 909.821 million shares worth N12.057 billion in 4,798 deals, contributing 40.28% and 38.69% to the total equity turnover volume and value respectively.
Outlook for the Week ahead
Market analysts say as the half-year earnings season approaches, investors are expected to seek signs of improvement following the broadly lackluster corporate earnings reported in Q1-2024. This anticipation is likely to lead to mixed market performance in the coming week. Bargain hunting for undervalued stocks is expected to be balanced by intermittent profit-taking activities, as investors react to the initial earnings reports.
