The first week of June concluded with a broadly bearish sentiment on the Nigerian Exchange (NGX), as the overall market witnessed declines.
However, amidst the downturn, a handful of stocks showed remarkable resilience and posted significant gains, providing a silver lining for investors.
Market Overview
The NGX recorded a notable 22% decline in turnover volume for the week ending June 7, 2024. Investors traded 1.703 billion shares across 37,765 deals, compared to the previous week’s 2.189 billion shares.
The total turnover value also decreased slightly by 2.6%, from N31.303 billion to N30.495 billion.
Both the All-Share Index and market capitalization saw marginal declines, with the All-Share Index slipping 0.08% to close at 99,221.14 points and the market capitalization decreasing to N56.128 trillion from N56.172 trillion.
Sector Performance
The Financial Services Industry led the activity chart by volume, trading 1.222 billion shares valued at N15.876 billion in 18,782 deals.
This sector accounted for 71.77% of the total equity turnover volume and 52.06% of the value.
Following closely, the Oil and Gas Industry recorded 171.174 million shares worth N3.549 billion traded in 3,699 deals. The Consumer Goods Industry came in third, with 116.145 million shares valued at N4.434 billion exchanged in 4,163 deals.
RT Briscoe PLC emerged as the top performer of the week, with its share price rising by 25% from N0.48 to N0.60. This impressive gain highlights investor confidence in the automotive company. Oando PLC followed closely, with a 23.7% increase, closing the week at N14.60.
The oil and gas company’s performance was buoyed by favourable market conditions within the sector. Eterna PLC also recorded a significant gain of 22.4%, ending the week at N15.00. This performance underscores the ongoing positive sentiment in the oil and gas industry.
The Vetiva Consumer Goods ETF saw a robust 21% increase, reflecting strong investor interest in the consumer goods sector. The Stanbic IBTC ETF 30 posted a solid gain of 20.7%, demonstrating the attractiveness of diversified investment options.
Deap Capital Management & Trust PLC rounded out the list of top gainers with a 20% increase, indicating strong market performance.
On the flip side, several stocks faced significant losses. Both the Meristem Value Exchange Traded Fund and Meristem Growth Exchange Traded Fund saw substantial declines of 34%, reflecting challenging conditions for these investment vehicles.
Unity Bank PLC experienced a sharp drop of 22%, underlining the volatility within the financial sector. Sovereign Trust Insurance PLC declined by 14%, pointing to difficulties within the insurance sector. Transnational Corporation PLC saw an 11% decrease, adding to the list of notable decliners.
Both Sunu Assurances Nigeria PLC and Prestige Assurance PLC recorded 11% declines, highlighting the pressures on insurance companies. May & Baker Nigeria PLC experienced a 10% decline, adding to the list of significant losers. E-Tranzact International PLC and Fidelity Bank PLC both closed the week with 10% losses. The tech and banking sectors each had their challenges, contributing to the overall market decline.
Top Traded Stocks
Fidelity Bank, Access Holdings, and Veritas Kapital Assurance were the most actively traded stocks, with a combined total of 583.809 million shares valued at N5.740 billion.
SWOOTs and FUGAZ Update
Stocks worth over one trillion (SWOOTs) had a relatively quiet week. Zenith Bank posted a modest gain of 0.76%, while GTCO and Seplat Energy saw slight declines. Other major players like Airtel Africa and MTN Nigeria remained unchanged.
Top-Tier Banking Stocks: Mixed Sentiments
Among top-tier banking stocks, Access Holdings and Zenith Bank saw modest gains, while FBNH, UBA, and GTCO experienced price declines. The banking sector displayed mixed sentiments overall.
