Equity Investors Gain N3.44T, Cement Names Drive Industrial Index
Equity investors gained N3.44 trillion on the Nigerian Exchange (NGX) in an all-week rally that pushed key performance indicators to fresh highs. The industrial index surged by 19.17% as cement names Dangote, BUA, and Lafarge Africa gained momentum in the local bourse.
The bargain hunting that lifted market capitalisation and all share indexes to new highs was buoyed by improved investor sentiment and enhanced funds inflow.
The Nigerian Exchange All-Share Index (ASI) surged past the 131,000 psychological barrier to close at 131,585.66 points, representing a 4.31% week-on-week upswing. Several stockbrokers reported that market capitalization climbed by N3.44 trillion to N83.24 trillion as investors increased bet on Nigerian stocks.
At the end of trading session on Friday, the year-to-date (YTD) return improved to 27.84%, racing far ahead of annual inflation rate of 22.22%. Stock data revealed that market breadth remained weak at 0.91x, with 49 gainers versus 54 losers, signalling selective participation despite overall market strength.
Trading activity was significantly upbeat. Total traded volume spiked 224.62% week on week to 17.49 billion units, while market turnover surged 364.48% to N500.76 billion.
In its market report, Cowry Asset Limited told investors that the jump in value traded was largely driven by two sizable off-market transactions: First Bank Holdings and Fidelity Bank recorded block trades of 10.4 billion and 1.1 billion units respectively, contributing to the weekly liquidity surge.
Investor optimism was also anchored on expectations for a potentially dovish stance from the Monetary Policy Committee (MPC) at its upcoming July meeting, Cowry Asset Limited said in its update.
Sectoral performance skewed positive, with four of six major indexes closed in the green. The Industrial Index led with a stellar 19.17% week on week return, driven by strong in BUA Cement, Dangote Cement, and Lafarge Africa.
The Banking, Consumer Goods, and Commodity indices followed, rising 5.36%, 1.34%, and 0.69% respectively on the back of price appreciation in Nestle, Stanbic IBTC, Nascon, Okomu Oil, AccessCorp, Nigerian Breweries, and UBA.
On the flip side, the Insurance and Oil & Gas indices fell by 3.65% and 0.76% week on week, respectively, amid sell-offs in Consolidated Hallmark Insurance Plc, Universal Insurance, NEM, CORONATION, MRS, and Oando.
Top-performing stocks for the week included Eunisell (32.6%), BUA Cement (31.3%), ABC Transport (28.4%), IMG (24.9%), and NSL Tech (21.0%). Conversely, Academy Press (-24.3%), RT Briscoe (-22.7%), Cutix (-19.6%), Caverton (-19.3%), and Champion Breweries (-17.5%) ranked among the week’s laggards.
The stock market sentiment is expected to remain mixed as investors await the outcome of the July MPC meeting. Cowry Asset Limited said the reversal in food and core inflation readings could encourage a policy hold, although market direction remains delicately poised between a short-term pullback and further upside.
“From a technical standpoint, the NGX ASI remains in overbought territory, with the Relative Strength Index (RSI) at 92.41, suggesting a potential correction.
“Nonetheless, the index continues to trade above the T-line and both the 50-day EMA and 50-day SMA, indicating underlying strength. We maintain a cautious optimism and recommend that investors focus on fundamentally sound stocks, especially as Q2 earnings season approaches.
“Amid the prevailing markup phase and pockets of sectoral rotation, strategic stock selection and disciplined entry levels will be key to maximizing returns while managing downside risk,” Cowry Asset Limited said in a note. #Equity Investors Gain N3.44T, Cement Names Drive Industrial Index Stanbic IBTC Hits 52-Week High Ahead of August Earnings
