The Nigerian Exchange Limited (NGX) closed the third quarter (Q3) of 2021 on a cheering note, following the positive sentiments maintained by investors who expected the release of the quarter three (Q3) 2021 earnings reports by quoted companies.
This reflected on the return posted by NGX All-Share Index which closed the quarter in review at 40,221.17 points, signifying a 6.1percent increase from 37,907.28 points at the end of the second quarter (Q2).
Market snapshot
Quarter-on-quarter (QoQ), the total market capitalization increased from N38.19trillion in Q2 to N40.55trillion in Q3.
Breakdown shows that equities market capitalisation increased from N19.77trillion in Q2 to N20.96trillion in Q3.
Value of largely capitalised stocks increased to N16.91trillion in Q3 from N15.88trillion in Q2. Mid Cap stocks value rose to N2.97trillion in Q3 from N2.86trillion in Q2; while Small Cap stocks value increased to N1.08billion in Q3 from N1.02billion in Q2.
ETF Market Capitalisation which stood at N12.25billion in Q2 decreased to N12.02billion in Q3. Bonds Market Capitalisation rose to N18.40trillion in Q3 from N17.39trillion in Q2.
NGX-30 Index rose from 1,594.8 points in Q2 to 1,674.51 points in Q3. All Share Index at 40,221.17 points in Q3 represents remarkable increase from 37,907.28 points in Q2. Total value traded in Q2 which was N179.66 billion decreased to N150.30billion in Q3.
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Average daily volume moved from Q2 low of 245.97 million to 259.91million in Q3. Average daily value traded also decreased from Q2 high of N3.05 billion to N2.35billion in Q3.
Average Daily Transactions which was 3,851.05 in Q2 decreased to 3,757.13 in Q3.
The equities market turnover velocity which was 3.53percent as at Q2 decreased to 2.84 percent in Q3. Average PE Ratio (Weighted) – Equities rose from Q2 low of 164.73 to 174.87 in Q3. The number of listed companies on the Bourse decreased from 151 in Q2 to 150 in Q3.
Market flows
The market’s flows in nine months to September show domestic investors accounted for 78.54percent while their foreign counterparts accounted for just 21.46percent.
In 2019, domestic investors accounted for 51.11percent of equities trading while in 2020 they controlled 66.37percent. In 2019, foreign investors accounted for 48.88percent of market flow while in 2020 it was just 33.63percent.
All equity market indices, except the NGX ASeM index, posted positive one-year returns. In Q3 2021, trading activities increased when compared with Q3 2020 as the total volume of securities traded increased by 5percent while the total value of securities traded reduced by 8.61percent.
There was 8.61percent decrease in the average daily value traded from N2.57 billion ($6.66 million) in Q3 2020 to N2.35 billion ($5.68 million) in the period under review. Similarly, the average daily volume of securities traded rose by 5percent to 259.91million units in Q3 2021 when compared with 247.53 million units recorded in Q3 2020.
At the end of the quarter, the average PE ratio of The Exchange’s listed equities stood at 174.87 while equity turnover velocity was 2.84percent.
