Equities Market Cap Increases by N410bn to N36.92T

Equities Market Cap Increases by N410bn to N36.92T

The equities market of the Nigerian Exchange (NGX) jumped by about N410 billion to N36.92 trillion due to buying interest on some companies’ shares spanning four out of five trading sessions, data from the local bourse showed.

The uptrend was supported by a surge in the benchmark index, rising by 1.12% week-on-week to reach 67,200.69 points, according to stockbrokers. The market remained in a consolidation range with low trading volume and positive market breadth, Cowry Asset told equities investors in a note.

Market analysts said the positive trend was driven by increasing expectations for the Q3 earnings season, despite macroeconomic policy uncertainties and corporate announcements of closed periods. Data from the local exchange showed that the year-to-date return of the All-Share Index (ASI) rose to 31.12%, rising far ahead of an annual inflation rate of 25.8%.

Stock market results showed that activity level worsened as average volume and value traded declined by 32.9% and 7.5% week on week to 293.9 million units and ₦4.8 billion respectively.

Afrinvest told investors in its market update that the top traded stocks by volume were NEIMETH (164.5m units), FIDELITY (154.9m units), and ACCESSCORP (153,7m units), while SEPLAT (₦4.2bn). ACCESSCORP which traded ₦2.4 billion followed by N2.2 billion recorded for ZENITH led in terms of value.

The Industrial and Consumer Goods indices advanced 5.0% and 1.4% week on week respectively driven by buying interest in BUACEMENT (+12.6%), CAP (+0.8%), NB (+9.1%) and DANGSUGAR (+7.4%).

Also, the Insurance and Oil & Gas indices rose 0.9% and 0.3% week on week respectively due to price appreciation in CHIPLC (+12.7%), WAPIC (+4.9%), MRSOIL (+5.7%) and OANDO (+2.2%).

On the flip side, Afrinvest said the Banking index declined 0.8% w/w due to selling pressure on ETI (-5.3%), STERLING (-5.1%), and, FIDELITY (-1.8%).   Investor sentiment, as determined by market breadth remained unchanged at 0.0x as 37 stocks gained, 33 lost and 82 closed flat.

Top gainers of the week were THOMASWY (+30.8%), ABCTRANS (+23.1%) and CHIPLC (+12.7%), while PRESTIGE (-10.0%), ROYALEX (-9.6%) and PRESCO (9.5%) led the laggards. In the coming week, we expect the positive momentum to be sustained by bargain opportunities. 

Four out of five sessions this week were in a bullish trend, resulting in N409.9 billion in weekly profits, primarily driven by positive price movements in the Industrial goods index. The weekly tally of deals increased by 6.15% week-on-week to 29,683 deals. The average traded volume, on the other hand, decreased by 39.02%, settling at 1.47 billion units.

The weekly average value rose by 10.47% week-on-week, reaching a value of N24.43 billion. Some stocks displayed exceptional performance, with strong investor interest. Cowry Research anticipates a mixed market sentiment in the coming days, to be driven by both bargain hunting and portfolio repositioning.

However, the firm said equity investors are likely to keep a close watch on the September Consumer Price Index (CPI) from the NBS by Monday and the release of Q3 corporate earnings reports. #Investors Stake N653bn on Nigerian Sukuk -DMO

This mix of sentiments may also be influenced by ongoing sectoral rotation. Analysts said they anticipate foreign portfolio investors to digest and positively react to the new foreign exchange policy by the CBN and this direction will play a crucial role in shaping market dynamics as investors seek clarity on the broader economic landscape.   #Equities Market Cap Increases by N410bn to N36.92T