NGX Gains N459bn as Transcorp, Dangote Sugar Rally

NGX Gains N459bn as Transcorp, Dangote Sugar Rally

With an impressive from the beginning of the year to date, the Nigerian Exchange (NGX) has become a money making machine for Alpha seekers who have mastered the art of risk-taking on growth, and value stocks in the local bourse.

At about N459 billion weekly gain, the market index advanced, thus pushing year-to-date returns to about 28% – farther ahead of an annual inflation rate of 24.08 and stockbrokers remain optimistic that the local bourse would ascend further.

According to stock traders at Futureview, the Nigerian equities market had a promising start to the week, as keen interest from bargain hunters in key stocks drove the All-share index (NGXASI) to conclude Monday’s session at 65,200.75 points.

This optimistic momentum set the tone for the rest of the week, according to Futureview, resulting in gains over four trading sessions. However, the market experienced a slight setback on Thursday, with a 14 basis points decline.

As a result of this encouraging momentum, the total market capitalization of listed equities also experienced a concurrent uptick of 1.29% week-on-week, reaching a noteworthy N35.88 trillion compared to the preceding week’s value of N35.42 trillion.

This translated to N458.6 billion gain in the week for equities investors. Market data showed that the year-to-date return of the All-Share Index (ASI) remains an impressive 27.92%, underscoring the Nigerian market’s commendable resilience in the face of prevailing global uncertainties.

During the trading week, market participants conducted transactions amounting to 1.81 billion shares, with a total valuation of N29.29 billion, executed through 31,163 trading agreements. This contrasts with the preceding week’s trading performance, which saw a total turnover of 1.69 billion shares valued at N29.41 billion across 29,477 deals.

Futureview said at the forefront of trading activity, based on volume, was the Financial Services Industry, which commanded the activity chart with a substantial turnover of 936.69 million shares, valued at N10.12 billion, executed through 12,886 deals.

This sector’s robust performance contributed significantly to both the overall equity turnover volume at 51.68% and the value at 34.53%. Following closely was the Conglomerates Industry, registering a turnover of 461.59 million shares amounting to N2.33 billion, achieved through 3,451 deals.

Occupying the third position, the Consumer Goods Industry recorded a turnover of 127.31 million shares valued at N5.00 billion, spanning 5,792 deals. Stockbrokers said the market’s focal point centred on the top three equities by volume: Transnational Corporation Plc, Fidelity Bank Plc, and Access Holdings Plc.

Transactions on these stocks drove significant trading activities, accounting for a turnover of 693.53 million shares, equivalent to N5.03 billion, across 5,450 deals. This notable performance contributed 38.26% to the total equity turnover volume and 17.17% to the overall value of trades conducted. >>> Naira Steadies as Banks Issue Update on FX Purchase

In the just concluded week, BUAFOODS gained 7.9%, DANGSUGAR surged by 35.7% and TRANSCORP appreciated by 39.4% due to large investors’ bets. “We anticipate the continuation of bullish momentum into the upcoming week. We advise investors to invest in high-quality stocks with strong fundamentals supporting them”, Futureview told Investors in a note.

#NGX Gains N459bn as Transcorp, Dangote Sugar Rally

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ogochi Ndubuisi is creative content manager with interest in marketing and advertisement. Ogochi supports MarketForces Africa's clients corporate communication units with content development and liaise with media unit for disseminable product information.