Equities Investors Portfolio Grows to N67.7trn in Nigerian Exchange

Equities Investors Portfolio Grows to N67.7trn in Nigerian Exchange

Equities investors achieved a weekly gain amidst mixed trading sentiment in the Nigerian Exchange, NGX, trading platform.  The domestic stock market ended the week on a positive note as investors digested inflation data and the Central Bank of Nigeria’s (CBN) monetary policy decision.

Trading details revealed that the NGX All-Share Index (ASI) rose by 0.41% week-on-week to close at 108,497.40 points. Stockbrokers said the movement was driven by investors taking positions for portfolio rebalancing, prompted by pressured sell-offs across various counters and shaped by expectations and outcomes of the rebased consumer price index and monetary policy committee decisions.

Similarly, the total market capitalisation of listed equities increased by 0.29% week-on-week to N67.61 trillion, despite the cancellation of 166.95 million units of ordinary shares of Dangote Cement Plc during the week.

In a note, Cowry Asset Limited said strong bargain hunting played a key role in this rise, as equity investors gained N95.93 billion across two of the five trading sessions this week.

Consequently, the year-to-date return of the index climbed to 5.41%, although market breadth remained weak at 2.15x, with 58 decliners against 27 advancers, the firm said. Stockbrokers explained that despite the benchmark index’s positive performance, trading activity remained weak, mirroring the trend from the previous week.

The results showed negative sentiment, with the total weekly traded volume declining by 17.12% to 2.0 billion units, transacted across 70,853 deals. The total weekly trade value fell by 10.9% to N49.89 billion, indicating reduced investor participation in the stock market in the week.

Across the sectoral front, market performance was mixed, with three sectors closing in positive territory while three ended in the red. The Consumer Goods Index emerged as the top gainer, up by 6.55% week-on-week, followed by the Insurance Index, which rose by 1.47%, and the Industrial Index, which edged up by 0.05%.

The notable gainers in these sectors included DANGOTE SUGAR, BUAFOODS, SOVRENINS, WAPIC, BETAGLASS, RT BRISCOE, and NIGERIAN BREWERIES. Conversely, the Banking Index led the laggards, declining by 3.22% week-on-week, followed by the Oil & Gas Index, which dropped by 2.87%, and the Commodity Index, which fell by 0.50%.

Cowry Asset Limited told investors that these losses were driven by selloffs in Aradel Holdings, Zenith Bank, ETERNA OIL, ACCESSCORP, FIDELITYBNK, and CONOIL as investors engaged in portfolio rebalancing.

ABBEYBDS and DANGOTE SUGAR led the top performers on the chart, appreciated by 16.1% and 15.0%, respectively. BUAFOODS followed with an 11.9% gain, driven by strong buying interest, while Sovereign Trust Assurance and Champion Breweries advanced by 11.9% and 9.9%, respectively.

On the flip side, UNION DICON Salts was the worst-performing stock, declining by 25.0%, followed by IKEJA HOTEL, which fell by 21.4%, UPDC by 18.0%, ACADEMY PRESS by 16.50%, and OANDO by 15.7%.

Stock analysts at Cowry Asset Limited anticipate mixed market sentiment in the coming week as investors await further corporate earnings releases and dividend declarations. #Equities Investors Portfolio Grows to N67.7trn in Nigerian Exchange FG to Create Diaspora City to Boost Tourism