Investors See N329 Billion Weekly Gain in Stock Market
Equity investors see N329 billion weekly gain in the Nigerian stock market amidst the fresh but really strong rallies following the inflation slowdown in September as per data from the Bureau of Statistics.
Investors pumped more money into some big names including financial service stocks. FBNH shares did witness a strong upward price adjustment as investors’ position ahead of third-quarter earnings season.
Market expectations for record-breaking growth appear to be positive as industries data continue to be flattered by base effects in 2020, given the fact that the fixed income investment returns have remained unimpressive.
This week, the local bourse sustained gains on all trading days save on Monday. Accordingly, the benchmark index rose 1.4% week on week to 41,438.15 points following strong buying interest in FBNH (+29.6%), GTCO (+3.5%), and WAPCO (+3.2%).
Similarly, year to date return improved to 2.9% and market capitalisation rose ₦329.0 billion week on week to ₦21.6 trillion.
Following an improved sentiment, trading activity strengthened as average volume and value traded rose 66.3% and 119.9% week on week to 567.7 million units and ₦6.3 billion respectively.
Leading the most traded stocks by volume were FBNH (1.1 billion units), GTCO (118.2 million units), and ETI (107.7 million units) while FBNH (₦12.3 billion), SEPLAT (₦1.1 billion), and ZENITH (₦810.6 million) led trades by value.
In a market report, Afrinvest Limited said performance across the sectors within its analysts’ coverage was largely bullish as all indices gained, save the AFR-ICT index which closed flat.
The firm said similar to last week’s trend, the Banking index led the gainers with a 2.6% week on week gain due to buying interest in FBNH (+29.6%), ETI (+9.5%), and GTCO (+3.5%).
In the same vein, the Insurance and Industrial Goods indices rose 1.6% and 1.0% week on week respectively following price appreciation in ROYALEX (+12.3%), CUSTODIAN (+9.0%) and WAPCO (+3.2%).
Furthermore, the Oil & Gas and Consumer Goods indices advanced 0.6% and 0.5% week on week respectively on the back of price uptick in SEPLAT (+1.4%), INTBREW (+9.9%), and CADBURY (+6.3%).
Investor sentiment strengthened this week, as market breadth (advance/decline ratio) doubled week on week to 3.2x as 41 stocks gained while 13 lost.
The top outperformers for the week were CHAMPION (+49.5%), FBNH (+29.6%), and ROYALEX (+12.3%) while LEARNAFR (-18.7%), IKEJAHOT (-7.9%), and ABCTRANS (-5.9%) led the laggards.
Next week, Afrinvest expects a sustained bullish performance as positive sentiment continues to build up in anticipation of the more Q3 earnings releases. # Investors See N329 Billion Weekly Gain in Stock Market
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