NGX Booms as GEREGU, STANBIC, BUAFOODS Rally
The size of the equities segment of the Nigerian Exchange (NGX) expanded to N30.3 trillion at the close of trading sessions spanning five trading days as investors gained N316 billion.
The Nigerian stock market continues to boom despite election jittery, gaining 1.3% amidst corporate earnings releases and dividend announcements.
Despite election jittery and negative macroeconomic indices, equities investors actually waved off uncertainties in the market with higher positioning in growth and value stocks with solid fundamentals.
The strong weekly gain reported in the local bourse was steered by buy interest in BUAFOODS, DANGCEM, and STANBIC. Market data indicates that Stanbic IBTC’s share price appreciated by 18.8%. Gegegu Plc gained 31.4% ahead of its annual general meeting.
Also, BUA Foods Plc’s share price popped up 10.5% last week. In addition, following moderate profit growth, Dangote Cement Plc recorded a 2.2% share price appreciation. Capital gain in other mid-cap companies’ stocks also supported the market growth.
With solid positioning in the equities space, NGX year to date return jumped to 8.3% from 7.2% in the previous week. Positive sentiment continues to drive growth momentum with increasing trading activities.
In their separate market notes, stockbrokers’ said activity levels on the bourse were seemingly mixed as trading volume surged by 138.5% on weekly comparison while trading value dipped by 43.5% in the same period.
The Nigerian Exchange All-Share Index advanced by 1.3% week on week to close at +8.6% year to date. Key market indices closed positive as NGX trades at 2008 highs.
Sectoral performance was broadly positive as the Consumer Goods (+12.3%) index recorded the most significant gain, followed by the Banking (+3.4%), Industrial Goods (+1.8%), Insurance (+0.9%), and Oil and Gas (+0.3%) indices.
On Friday, trading activity decreased, with total deals and value falling by 9.65% and 18.31%, respectively, to 3,962 trades and N2.66 billion. In terms of volume, CHAMS was the most active stock, with 571.07 million shares worth N125.78 million changing hands in 21 deals. # NGX Booms as GEREGU, STANBIC, BUAFOODS Rally