Investors’ Net Worth Spikes as Nigerian Stock Market Booms
Equities investors’ net worth spikes strongly as Nigerian Exchange (NGX) switches into bullish gear after the month of November ushered in fresh and perhaps sustained rallies across the key segments of the local bourse.
In the just concluded week, investors’ net worth inched higher over sustained bargain hunting in growth, and value stocks. Trading data shows that stock market capitalisation rose N1.26 trillion as heavyweights like Airtel Africa, and MTN Nigeria shares appreciated.
Recall that in November, 20222 equities investors gained about N2 trillion. Ahead of December, Santa Claus rally, the domestic equities market is consolidating on the previous positioning despite interest rate hikes.
Some analysts had projected selling rallies will occur in the equities space, but surprisingly the market has been upbeat, gaining 1.26% this week as key performance indicators breached the resistance level.
Data from the local bourse show that the Nigerian Exchange All-share index crossed the 48,000 psychological mark to 48,154.65 points. As a result, the year to date advanced to 12.7% – still far from the average inflation level.
Overall, the stock market capitalisation rose to N26.23 trillion signalling an uptrend and a relative return of strength to the market.
Although the upbeat market performance was buoyed by price appreciations and strong buying demands in some of the banking and insurance stocks, investors took profit worth N326.98 billion from 3 of the 5 sessions, Cowry Asset Management noted.
Stockbrokers noted that the low price-to-earnings ratio followed the positive sentiment and buying pressure after stock market players had done their analysis of the nine-month earnings reporting which supported market fundamentals.
Market data showed that tickers PZ share price appreciated by 15%, UACN popped up by 14%, WEMABANK gained 10%, ARDOVA rose by 10% also while NEM spiked by 9%. READ: Yield on T-Bills Spikes, Bond Slides Small as Naira Falls
Meanwhile, 3 out of 5 sectors closed northward. NGX Insurance index rose by 2.23% for the week and was followed by NGX Banking Index and NGX Oil/Gas Index which closed positive by +1.73% and +0.44% from the prior week.
On the flip side, the NGX Industrial Goods index fell by 0.94% and the NGX Consumer Goods index lost 0.29%, leading the week as the losers. Activity levels were mixed, according to data from NGX as trading volume increased week on week while trading value declined in the same period.
Cowry Asset report showed that total traded volume surged by 18.04% to 839.97 million units. However, the total weekly traded value dipped by 24.89% week on week to N7.37 billion. Also, the total deals traded for the week tanked by 2.87% to 16,183 trades for the week. # Investors’ Networth Spikes as Nigerian Stock Market Booms