NGX Gains N87bn as Consumer, Oil & Gas Indices Rally
The Nigerian Exchange (NGX) rose by about N87 billion on Friday amidst a slowdown in economic growth. Trading activities have been relatively bullish, bargain hunting by alpha seekers pushed year to date index near 28%.
On Friday, the market recorded price appreciation in DANGSUGAR (+8.0%), TRANSCORP (+9.9%), and NASCON (+10.0%) following large equities investors bets.
These stocks have recorded large gains throughout the week. The total trade value saw a notable decline of 67.21%, amounting to N 4.23 billion. Additionally, the trade volume also displayed a decline of 38.94%, with a cumulative 356.01 million units traded across 6,569 transactions.
NASCON, FTNCOCOA, and NEM attained notable gains of 9.95%, 9.94%, and 9.90%, respectively. Conversely, PRESTIGE, TANTALIZER, and OMATEK encountered declines of -9.43%, -9.38%, and -9.09% respectively
Afrinvest said performance across its coverage sectors was positive, as 5 indices gained, while the AFR-ICT index closed flat. In today’s trading session, the NGX All Share Index achieved a rise of 0.24%, closing at 65,558.91 points; fuelled by heightened buy-side interest observed in prominent stocks.
According to data from the local bourse, gainers included NASCON 9.95%, TRANSCORP 9.85%, DANGSUGAR 7.95%, ACCESSCORP 1.85%, FLOURMILL 1.03%, WAPCO 0.37%, GTCO 0.28%, and other listed equities.
Data showed that the Banking and Insurance indices rose 0.1% apiece, on the back of buy interest in FIDELITY (+2.1%), NEM (+9.9%) and SUNUASSURE (+9.7%).
Stockbrokers said year-to-date return inched higher to 27.92% from 27.6% on Thursday. In August, stock market has gained 1.90%. Overall, equities market capitalisation advanced ₦86.9 billion to₦35.9 trillion.
Also, price appreciation in WAPCO (+0.4%) moved the Industrial Goods index up 2 basis points.
Investor sentiment, as measured by market breadth, strengthened to 0.10x (from -0.36x in the prior session)as 30 stocks advanced, 24 declined, while 62 closed flat. In the coming week, we anticipate sustained positive momentum, driven by bargain opportunities.
According to the Gross Domestic Product (GDP) data for Q2:2023 released by the NBS today, the Nigerian economy grew in real term by 2.51% y/y, translating to a positive 0.2ppt outrun to the performance in Q1:2023.
The performance of the GDP was mainly driven by the service sector, which grew 4.4% y/y (contribution: 58.4%) while agriculture posted growth of 1.5%. However, the Industry sector contracted by 1.9%. #NGX Gains N87bn as Consumer, Oil & Gas Indices Rally
