Investors appeared to be taking major positions in the oil and gas and banking sectors as companies round off the 2021 financial year. Transactions on the shares of three major oil and gas and banking stocks accounted for two-thirds of total turnover at the Nigerian stock market at the weekend.
Trading report for the week showed that the trio of Oando, FBN Holdings (FBNH) and Guaranty Trust Holding Company (GTCO) were the most active stocks for the week, accounting for 2.28 billion shares worth N17.4 billion in 3,645 deals, representing 66.47 per cent and 56.27 per cent of the total equity turnover volume and value respectively.
All the three companies are currently undergoing considerable transition. Oando, which saw N12 billion deals, recently resolved a major investors’ dispute. FBNH is a subject of aggressive acquisition in contest for major shareholding while GTCO changed its operating structure from a standalone commercial bank to a financial holding group.
Oando was the most active stock with a trunoer of 1.99 billion shares worth N11.92 billion in 472 deals. FBNH followed with a trunoer of 147.34 million shares worth N1.79 billion shares in 1,151 deals while GTCO placed third with 145.4 million shares valued at N3.68 billion in 2,014 deals. Reliable sources confirmed that the transactions on Oando were mainly related to the resolution of the recent investors’ dispute.
Total turnover at the Nigerian Exchange (NGX) stood at 3.44 billion shares worth N30.92 billion in 21,109 deals last week as against a total of 1.39 billion shares valued at N27.89 billion traded in 19,990 deals two weeks ago.
With the Oando deals, the oil and gas services sector led the activity chart with 2.014 billion shares valued at N13.448 billion traded in 1,350 deals; thus contributing 58.63 per cent and 43.50 per cent to the total equity turnover volume and value respectively. The financial service sector followed with 1.052 billion shares worth N10.168 billion in 10,941 deals while the consumer goods sector placed third with a turnover of 183.803 million shares worth N4.492 billion in 4,007 deals. The pricing trend at the Nigerian market remained bullish with net capital gains of N54 billion last week. Average return for the week stood at 0.25 per cent, nudging the average year-to-date return to 7.54 per cent.
The All Share Index (ASI)- the benchmark value index that tracks share prices of all quoted equities at the NGX, closed weekend at 43,308.29 points as […]
