NGX Ends Positive as Earnings, Share Buyback Drive Rally
Amidst a raft of macroeconomics projections for the second half, the Nigerian Exchange (NGX) ends the week positive as earnings, share buyback drive stock market rally.
Due to the extended bullish run, the NGX benchmark index inched higher to 38,667.90 points with market capitalisation and the All-share index (ASI) growing by 0.21 per cent on the last trading session of the week.
Atlass Portfolios Limited said positive sentiments on the bourse was driven by impressive first half outturns from TOTAL, UNILEVER, supported by DANGCEM share buy-back and settlement agreement between OANDO and the Securities Exchange Commission.
Consequently, stock market breadth remained positive with 31 gainers versus 12 losers on Friday, according to NGX data. Similarly, trading activities enjoyed an upward trend with both volume and value of stocks traded on the exchange appreciating by 13.36 per cent and 34.04 per cent respectively.
A total sum of 230.25 million units of shares valued at N2.31 billion, were traded in 4,135 deals.
FIDELITYBK led the volume chart, accounting for 10.76 per cent of the total volume of trades, followed by ZENITH BANK (10.55%) UPCAP (6.30%) UBA (4.77%), and SOVRENINS (4.57%) to complete the top five on the volume chart.
ZENITH BANK led the value chart accounting for 26.12 per cent of the total value of trade on the exchange.
UNIVINSURE, OANDO, TOTAL topped the gainers’ chart, with their share prices advancing by 10.00 per cent, 9.97 per cent, and 9.96 per cent, respectively. While UPL led the losers’ table with its share price depreciating by 9.03 per cent to close at N1.41 after opening the day at N1.55.
“We observed that investors flocked into the shares of TOTAL on the back of the impressive Q2-21 earnings release accompanied with an interim dividend of N4.00/s and DANGCEM due to expectation of the second tranche of its share buyback programme”, Cordros Capital said in a report.
Based on the preceding, the All-Share Index advanced by 1.9% above last week to close at 38,667.90 points.
Accordingly, the month to date gain expanded to 2.0%, while the year to date loss moderated to -4.0%. However, activity levels were weak, as trading volumes and value declined by -11.1% and -52.1% respectively week on week.
Specifically, investors’ interest in TOTAL (+21.0%), GUINNESS (+9.1%) and DANGCEM (+7.8%) were the primary drivers of the positive performance this week, Cordros Capital report hinted.
Overall performance across sectors was broadly adjudged positive save for the Insurance (-0.7%) index that closed in the red; the Oil and Gas (+7.5%), Industrial Goods (+4.1%), Consumer Goods (+0.6%), and Banking (+0.4%) indices closed in the green.
“In the week ahead, we believe investors will be focused on the outcome of the MPC meeting to gain further clarity on the movement of yields in the FI market. We also expect the NGX floor to be flooded with corporate earnings as more companies publish their unaudited H1-21 numbers, accompanied by dividend declarations.
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“We believe this should provide respite for market performance. Overall, we advise investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings”, Cordros told clients in an email.
NGX Ends Positive as Earnings, Share Buyback Drive Rally
