Oil, gas stocks dominate as gains in Oando lift sector by 3.5%

The oil and gas sector led the gainers’ chart at the end of last week’s transaction on the equities sector of the Nigerian Exchange Limited (NGX) with 3.5 per cent buoyed by 33.5 per cent price appreciation in Oando and a ten per cent gain in Total Plc.

Following the sector last week was the insurance sector rose by 190 basis points driven by 10.5per cent and 9.9 buying interest in Cornerstone Insurance and Linkage Assurance.

However, the industrial and consumer goods indices dipped by 4.9 per cent and 1.4 per cent due to 10 per cent and 9.4 per cent selloff in Dangote Cement and Betaglas and price depreciation in International Brewery and Dangote Sugar Refinery of negative 5.5 per cent and 5.3 per cent.

Consequently, a total turnover of 5.6 billion shares worth N33 billion was recorded in 42,006 deals by investors on the floor of the exchange, in contrast to a total of two billion units, valued at N42.1 billion that was exchanged in 45,157 deals on August 16.

The financial services industry (measured by volume) led the activity chart with 4.9 billion shares valued at N17.9 billion traded in 19,064 deals. The sector contributed 88.2 per cent to the total equities turnover.

The oil and gas industry followed with 179.5 million shares worth N8.9 billion in 5,780 deals. The services industry ranked third with a turnover of 123.5 million shares worth N525.4 million in 2,436 deals.

Trading in the top three equities namely Standard Insurance Plc, Jaiz Bank Plc and Guaranty Trust Holdings Company Plc (measured by volume) accounted for 3.9 billion shares worth N7.9 billion in 1,839 deals, contributing 70 per cent to the total equity turnover volume and value respectively.

On the price movement chart, the all-share index and market capitalisation depreciated by 1.2 per cent and 0.004 per cent to close the week at 95,973.45 and N55.129 trillion respectively, amid sell pressures on Dangote cement (-10 per cent) and Transcorp Hotels (-6.3 per cent).

Consequently, the month-to-date and year-to-date returns settled at -1.8 per cent and 28.4 per cent. Reacting to market performance, analysts at Cordros Capital said: “In the near term, we believe the absence of a near-term catalyst will likely tilt overall market sentiment toward the negative and drive negative performances consequently.

“In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.”

Meanwhile, the total turnover in the FMDQ Securities Exchange Foreign exchange (FX) spot and derivatives markets for the week ended August 23, 2024 was $814.2 million, representing a decrease of 10.3 per cent ($93.4 million) from $907.5 million recorded for the week-ended August 16, 2024.

According to the exchange, the week-on-week (WoW) decrease in total turnover was jointly driven by the 9.3 per cent ($83.2 million) decrease in FX Spot turnover, which recorded a total value of $812.3 million, compared to $895.5 million recorded in the week-ended August 16 and the 84 per cent ($10.1 million) decrease in FX Derivatives turnover.

In addition, the WoW decrease in FX Derivatives turnover was solely driven by the 84 per cent ($10.1 million) decrease in FX Forwards turnover. Also last week, the average Nigerian Autonomous Foreign Exchange Fixing (NAFEX) was $/N1,590.67, compared to $/N1,578.54 recorded in the week ended August 16.