NGX Gains N197bn as Investors Take Fresh Positions
Shares appreciation spanning the sectorial unit of the Nigerian Exchange (NGX) pushed the equities market index, according to trading data for the week while year-to-date return jumped to 17.2%, ahead of Nigeria’s headline inflation rate of 19.64%.
Last week, UAC of Nigeria Plc listed additional shares of 44,835,076 of 50 kobo each on the Nigerian stock exchange on Friday, 2nd September 2022. This helped lifted market capitalisation, meaning growth seen in the week is not entirely due to price appreciation.
As of Friday’s close, the NGX market capitalization rose 0.73% this week to N26.9 trillion from N26.8 trillion in the prior week giving investors N196.65 billion capital appreciation. Driving the momentum were gains in Vitafoam, Etransact, Fidelity bank, and Guinness Nigeria Plc among others resulting from fresh positioning.
Overall, the Nigeria equity market inched higher by 0.73% week-on-week resulting from three positive closes out of the five trading periods. Resultantly, the benchmark Index inched upward by a marginal, rising above the 50,000 psychological mark to 50,045.83 points on August 11, 2022; and was driven by investors’ sentiments.
UNILEVER share price declined 9.63% week on week to lead the losers’ chart, trailed by MCNICHOLS with 9.46% share price down. CWG lost 9.09% this week while JOHN HOLT was priced 8.99% lower than its opening valuation.
HONYFLOUR share price fell 6.99% in the week and UPDC shed 3.77% while CADBURY pullback by 2.99%, leading the 21 stocks that depreciated during the week. On sectorial review, the Consumer Goods Index led the gainers’ chart with a 2.01% gain week on week and was followed by the NGX Industrial Index which popped +1.36%.
The NGX Banking and Insurance Indexes appreciated by 1.21% and 0.05% respectively while the Oil and Gas index inched 0.65% week on week. Projecting into the new week, some stockbrokers are expecting the stock market to be upbeat. READ: T-Bill Rate Rise as Investors Adjust Portfolio Maturity Positions
“We expect moderate bargain hunting in the coming week”, stockbrokers at Atlass Portfolios Limited said in a market report.
“…earnings releases expectations from some of the major banks are expected to buoy trading activities as investors begin to rebalance their portfolios as we head into the final month of the third quarter. Thus, we expect the bullish camp to rule the market”, according to Cowry Asset Limited.
Stockbrokers at Cordros Capital said in its market that they expect alpha-seeking investors to continue to seek trading opportunities in stocks of companies that delivered impressive earnings during the Q2-2022 earnings season amid the yield uptick in the fixed income market.
However, they think the absence of a near-term catalyst will likely skew overall market sentiments to the negative side, particularly as the political space gets heated.
Notwithstanding, Cordros Capital traders said they reiterate the need for positioning in only fundamentally sound stocks as the unimpressive macro environment remains a significant headwind for corporate earnings. # NGX Gains N197bn as Investors Take Fresh Positions
