Some financial analysts have advised investors to consider the shares of top three banks, namely, Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank International Plc, which emerged the most traded stocks at the Nigerian Stock Exchange last week.
Mr. Ambrose Omordion, Chief Operating Officer, InvestData Limited, said although various stocks are churning out every week as the most traded stocks, that does not rule out the fact that investors must be cautious on taking investment decisions.
He explained that as an individual or retail investor in the capital market, “you usually do not have the luxury of having access to deep research by well-paid financial analysts to help you make a smart investment decision. So every investor who has some funds to invest must be able to understand the market fundamental.”
A stockbroker, Mr. Adebayo Ajayi, said oftentime people look at investment decision from the equities point of view. “But there are other investment options open to you in the capital market, such as the bonds, index tracked funds, mutual funds or Exchange Traded Funds. As a new investor, your stockbroker should be able to advise you accordingly on this.
“Understanding all your investment options and the risks and potential returns that come with each option would help you in making a more informed decision. A common rule is that if the investment is sounding too complicated, then it could be too complicated to put your money in it,” Ajayi said.
Meanwhile, a total turnover of 1.749 billion shares worth N31.183 billion in 24,604 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 2.699 billion shares valued at N84.775 billion that exchanged hands last week in 19,715 deals.
The Financial Services Industry led the activity chart with1.423 billion shares valued at N19.717 billion traded in 13,950 deals; thus contributing 81.37 per cent and 63.23 per cent to the total equity turnover volume and value, respectively.
The Consumer Goods Industry followed with 153.105 million shares worth N6.805billion in 4,512 deals.
The third place was occupied by Conglomerates Industry with a turnover of 60.473 million shares worth N186.600 billion in 905 deals.
Trading in the Top Three Equities namely, Guaranty Trust Bank Plc, Access Bank Plc and Zenith Bank International Plc accounted for 588.605 million shares worth N16.568 billion in 4,120 deals, contributing 33.65 per cent and 53.14 per cent to the total equity turnover volume and value,
respectively.
A total of 10,561 units of Federal Government valued at N10.381 million were traded this week in 20 deals, compared with a total of 6,433 units valued at N6.599 million transacted last week in
12 deals.
The NSE All-Share Index and Market Capitalisation appreciated by 5.03 per cent and 5.04 per cent to close the week at 38,669.23 and N14.008 trillion, respectively.
