Equities Investors Gain N245bn as Nigerian Exchange Rally

Equities Investors Gain N245bn as Nigerian Exchange Rally

Equities market index spikes as investors in the local bourse take positions in value, growth stock as third-quarter earnings season begins to rest. Trading data from last week showed that investors took higher bets ahead of the Central Bank of Nigeria monetary policy committee meeting starting on Monday.

As a result of the bullish drive seen, stock market key performance indicators inched up 1.19%. The Nigerian Exchange (NGX) All-share index popped week on week to 44,492.73 points.

The stock market capitalization grew by N285.4 billion to N24.23 trillion as a result of bargain hunting in blue chip and growth stocks on the exchange through the week. READ: Yield on T-Bills Spikes, Bond Slides Small as Naira Falls

Two out of five trading sessions closed positively. In spite, the level and size of market appreciation recorded were strong enough to douse the negative impacts of three bearish trading outings. This pushed the year-to-date return to 4.2% from 2.9%.

However, activity level weakened as average volume and value traded fell 36.9% and 26.0% week on week respectively to 138.9 million units and ₦1.7 billion. Stockbrokers reported that ACCESSCORP traded 110.7 million units.

FIDELITY transacted 43.6 million units, trailed by 43.4 million units of ZENITH – being the top traded stocks by volume. Leading by value, MTNN traded shares worth ₦1.2 billion, ACCESSCORP traded ₦893.2 million, and ZENITH shares were exchanged for ₦891.1 million.

Afrinvest said across sectors under its coverage, performance was bullish as 4 indices gained and 2 lost. The Banking and AFR-ICT indices led the advancers, up 4.2% and 1.6% week on week respectively. This was driven by gains in UBN (+13.0%), ZENITH (+7.0%), and MTNN (+2.6%). There was also buying interest in MANSARD (+15.7%), CHIPLC (+5.2%), NB (+10.3%), and UNILEVER (+10.0%).

Insurance and Consumer Goods indices inched upward by 0.9% apiece, according to traders’ stock market reports. Conversely, the Oil & Gas and Industrial Goods indices dipped 1.3% and 0.4% week on week respectively due to losses in ETERNA (-10.0%), OANDO (-4.9%), and WAPCO (-5.6%).

However, activity levels were weak, as trading volume and value declined by 37.6% and 26.2% week on week respectively. Performance across sectors was mixed, according to stockbrokers noted following strong gains in the Banking (+4.2%), Insurance (+0.9%), and Consumer Goods (+0.9%) indices.

Meanwhile, t the Oil & Gas (-1.3%) and Industrial Goods (-0.4%) indices declined. Afrinvest stated that the top outperforming stocks for the week were MANSARD (+15.7%), UBN (+13.0%), and GTCO (+10.8%).

SCOA (-26.3%), GUINNESS (-19.0%), and REGALINS (-14.8%) were the top underperforming stocks.  For the new week, market analysts project a muted performance in the local bourse barring any positive catalyst.

Cordros Capital envisages a cautious trading theme, especially from domestic investors…reiterates the need for positioning only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.

In its market note, Cowry Asset hints that the market will trade with mixed sentiments as the digestion of the current inflation numbers put investors in position for the next move in the market as they await judgment from the MPC meeting next week. # Equities Investors Gain N245bn as Nigerian Exchange Rally

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