NGX Grows by N3.26trn after Transcorp Power Listing
The equities market capitalisation of the Nigerian Exchange (NGX) grew by N3.26 trillion after the local bourse admitted Transcorp Power Plc via listing by introduction.
The market has started recovery from negative impacts of corporate earnings miscarriages which drained buying sentiment and caused losing streaks worth N4 trillion in the previous week.
Last week, the local equities market experienced a bullish run despite a discernible shift by equity investors away from financial services stocks.
The fixed income market has become centred on attraction for alpha seekers due to appealing yields, which triggered negative market breadth in the stock exchange.
Data from the local bourse showed that the market index or All-Share Index (ASI) surged by an impressive 2.61% week on week, reaching 101,330.85 points.
The bullish performance caused market capitalisation to pop higher by 6.03% week-on-week. The growth level achieved by the Exchange was supported by a recent listing of TRANSPOWER.
In its market update, Cowry Asset Management Limited stated that investors enjoyed a substantial year-to-date return of 35.52%, resulting in a collective wealth accretion of N3.26 trillion compared to the previous week’s N1.83 trillion.
This performance underscores the dynamic interplay of market forces amid evolving economic conditions, stockbrokers said. Despite the overall bullish sentiment and the upward repricing of select Nigerian stocks, trading activity witnessed a significant surge throughout the week.
Stockbrokers reported that weekly deals accelerated by 6.38% to 51,557, while the average traded volume rose by 14.64% week on week to 2.16 billion units.
Additionally, the weekly average value moved impressively higher by 218.7% week on week, reaching N108.83 billion, which Cowry Assets said it is a reflection of an increased market participation and investor interest.
The sectoral performance for the week displayed weakness across most sectors, except the Industrial Goods Index, which recorded a modest gain of 1.59% week on week. This was attributed to positive price movements in BUACEMENT and LAFARGE.
Conversely, the Insurance, banking, and consumer goods sectors experienced downturns, losing 5.22%, 1.40%, and 1.21% week on week, respectively, due to retracements in the prices of key stocks such as GUINNESS, ETI, NEM, NASCON, UBA, FCMB, DANSUGAR, and AIICO.
The Oil & Gas index remained unchanged from the previous week’s close. Market performers include TRANSPOWER (46%), JULI (33%), TRANSCORP (19%), PZ CUSSONS (19), FBNH (15.3) and MTNN (10%).
On the loser track were: GUINNESS (17.5%), ETI (17%), NEM (16.7%), CHAMS (16%), and Nigerian Breweries (11%)
Cowry Research anticipates the prevailing bullish sentiment to persist in the new week. This expectation is based on the anticipation of more corporate announcements and continued portfolio rebalancing by investors seeking alpha.
Overall, the equities market capitalisation of the Nigerian Exchange rose by 3.26 trillion over a week to settle at N57.29 trillion. #NGX Grows by N3.26trn after Transcorp Power Listing
