NGX Rises as Value Hunters Take Positions
The equities segment of the Nigerian Exchange, NGX, gained about N8 billion in value as value hunters in the local bourse take positions on growth, and value stock from fundamentally sound and attractive listed companies.
Trading data from the local exchange revealed that the year-to-date return widened to 14.77%, though the benchmark declined by a marginal 0.01% week on week to 49,024.16 points. In terms of market return, stockbrokers told MarketForces Africa that market return slowdown from 16.7% in August to about 14.85 at the end of September 2022.
The trading pattern looks like a recovery as the stock market had plunged in reaction to the interest rate hikes which pushed average yields on fixed income instruments upward. Overall, the bullish tendency buoyed the equities market capitalization by 0.03% week on week to N26.46 trillion as investors seeking alpha continue their positions in the fundamentally sound tickers.
Following the impressive performance on the back of renewed positive sentiments, market gains were recorded from buying opportunities witnessed in Multiverse, NGX Group, Jaiz Bank, BUA Cement as well as Eterna.
Stockbrokers’ reports indicated that MULTIVERSE share price gained 31%, trailed by 18% share appreciation in NGXGROUP. Also, JAIZBANK saw its share price inched upward by 15% while BUACEMENT jumped by 9% and ETERNA did 10%.
On sectorial performance, the Industrial Goods index increased by 3.01%, the Oil & Gas Index popped up by 0.20%% to emerge as the best performing indexes week on week, reversing last week’s losses due to upticks in BUACEMENT, ETERNA and ARDOVA.
Conversely, the NGX Consumer Goods Indexes declined by 3.37% led the laggards, trailed by NGX Insurance and NGX Banking which declined by 3.25% and 0.89% week on week apiece, according to Stockbrokers
Trading activities in the local bourse cleared higher from last week as the total traded volume inched 78.5% to 1.01 billion units. Meanwhile, the total weekly traded value climbed upward by 17.6% to N10.41 billion. READ: Market Return Nears 14% as Investors Hunt Value Stocks
The total deals traded for the week advanced by 10.3% to 17,654 from 16,013 deals last week. In their projections, Cowry Asset stock traders said they expect the market to sustain its current trend as investors adopt cautious trading styles at this critical support level amidst low valuation and liquidity in the market.
Atlass Portfolios Stockbrokers said they expect mixed sentiment to continue from investors in the coming week, as bargain hunters hunt for recently depreciated stocks with good fundamentals, and Profit-taking at the other end due to uncertainties surrounding the economy. # NGX Rises as Value Hunters Take Positions
