Nigerian Bourse Records N2.8trn Gain in June
The equities segment of the Nigerian Exchange (NGX) recorded significant gains in June as positive sentiment triggered bargain hunting in growth and value stocks. As a result of sustained buying momentum that permeate the atmosphere, Alpha seekers’ wealth surged by about N3 trillion in the month.
The gaining streaks in the local bourse were driven by renewed investor optimism as the new administration began early implementation of expected pro-market policies, Afrinvest said in its market note to investors.
Despite concerns, Futureview Financial Service said investor confidence remained strong, driven by positive sentiments surrounding the peaceful transition of power and favorable policies introduced by President Bola Tinubu’s administration.
In June, the domestic bourse broke fresh records with sustained rallies that drove key performance indicators higher in spite of the absence of foreign portfolio investors.
Trading at a new high, year-to-date return accelerates toward Nigeria’s inflation rate level as NGX broke a four-year streak of losses in June. Market data shows that the equities market gained 18.9% in the first half of the year.
Also, the exchange recorded the best monthly performance in over two years, Futureview Financial Service said in a note, adding that the performance was influenced by factors such as increased demand for long-term instruments, changes in the foreign exchange framework, and the suspension of the Central Bank Governor.
The influx of local investors and favourable policies contributed to market stability and increased capital gains. Futureview expects the market’s positive trajectory to continue during the earning season, driven by investors’ anticipation of attractive dividends and a promising yield environment.
Trading activity for the month improved as average volume and value traded rose 15.5% and 42.1% to 684.3 million and ₦10.7 billion, respectively in June. The top traded stocks by volume for the month were ACCESSCORP (1.6bn units), GTCO (0.9bn units), and UBA (0.8bn units).
Meanwhile, BUACEMENT (₦65.7bn), AIRTELAF (₦46.4bn), and GTCO (₦30.0bn) led the value chart for the month. Afrinvest said across its coverage sectors, performance was positive as all indices posted monthly gains.
Leading the gainers, the Insurance and Oil & Gas indices rose 32.6% and 30.2% respectively in the month following buying interest in MANSARD (+21.5%), AIICO (+16.4%), TOTAL (+28.7%), and SEPLAT (+16.7%).
The Banking and AFR-ICT indices followed suit with monthly gains of 23.3% and 10.3% respectively due to price appreciation on ZENITH (+18.1%), AIRTELAF (+12.3%), and MTNN (+8.9%).
Similarly, price uptick in BUAFOODS (+4.5%), NB (+7.7%), and BUACEMENT (+0.3%) drove the Consumer and Industrial Goods indices higher by 5.5% and 0.1% m/m, respectively.
Investor sentiment, as measured by market breadth, improved to 1.9x from 1.6x recorded in May as 94 stocks gained, 22 lost while 37 were unchanged, Afrinvest said in its market report.
The top performing stocks for the month were FTNCOCOA which surged by 195.1%, ETERNA jumped by 172.7% and TRANSCOHOT popped higher by 162.6%.
Meanwhile, JOHNHOLT lost 45.5% of its market valuation in June followed by MCNICHOLS which lost 13.0% and ELLAHLAK declined by 11.0% – making the tickers’ top underperforming stocks.
Overall, stock market capitalisation advanced ₦2.8 trillion to ₦33.2 trillion in June 2023. #Nigerian Bourse Records N2.8trn Gain in June Nigerian Treasury Bills Yield Rises to 7%
