Investors See N488bn Gain in the Equities Market
Investors saw about N488 billion gain in the equities market due to improved buying sentiments. Hence, year-to-date inched higher to 34.46%, racing ahead of the annual inflation rate of 34.19% as traders took large bets on stocks with good upside potential.
Stockbrokers said buying sentiment was bolstered by the publication of half-year earnings reports and the declaration of juicy interim dividends by early filers.
In its market update, Cowry Asset Limited told investors that trading activity presented a mixed bag, with the benchmark NGX All-Share Index rebounding by 0.87% week-on-week to 100,539.40 points.
The rally effectively erased the previous week’s losses and signaling a return of strength to the market, albeit on low traded volume and negative market internals, according to the investment firm.
The size of Nigerian equities market advanced despite the delisting of three companies—Niger Insurance Plc, Resort Savings and Loans Plc, and RAK Unity Petroleum Plc—effective July 18, 2024.
Trading activity however ended on a mixed note. The total traded volume inched up by 2.22% week-on-week to 2.83 billion units and the total weekly deals rising by 8.54% week-on-week to 44,277 trades.
However, the total traded value for the week decreased by 50.3% week-on-week to N42.37 billion, according to market data cited by Cowry Asset Limited in its update. Data from the Nigerian bourse showed that the market breadth was mildly positive, with 37 weekly gainers compared to 34 weekly losers.
Stockbrokers said in the report that sectoral performance was weak, except for the Industrial Goods Index, which saw modest gains of 0.08%. Last week, the insurance Index led the laggards, declining by 4.86% week-on-week, followed by the consumer goods, oil & gas, and banking indexes, which retreated by 0.20%, 0.10%, and 0.05%, respectively.
Top performers at the close of the week included UCAP (+43%), AFRIPRUD (+34%), CUTIX (+30%), OANDO (+11%), and NAHCO (+9%).
Conversely, negative investor sentiment led to sell-offs in LINKASSURE (-25%), VERITASKAP (-12%), VITAFOAM (-10%), CHELLARAM (-10%), and NGXGROUP (-9%), positioning these stocks as the top losers for the week.
The anticipation of more earnings releases and attractive dividend declarations by corporates is expected to drive positive sentiment across counters, Cowry Asset Limited told investors.
Stockbrokers said while positive corporate earnings and dividends might uplift the market, economic policies and news will play a critical role in shaping overall investor sentiment.
Overall, the equities market capitalisation of the Nigerian Exchange rose by N487.94 billion week-on-week to N56.93 trillion from N56.44 trillion. #Investors See N488bn Gain in the Equities Market #CUTIX Gains 30% on Earnings Forecasts, Unusual Trade Volume
