NGX Hits N56Trn as Investors Gain N4.3Trn

Equities investors in the Nigerian stock market recorded a bumper harvest amidst the ongoing boom in the local bourse. The total market capitalisation of the Nigerian Exchange (NGX) rose by N11.6 trillion over five-day trading sessions that ended on Friday.

The local bourse ended the week on a positive with the All-share index gaining 8.3% to print at 102,401.88 points. The surge lifted the stock market year to date return to 36.95%. As a result, market capitalisation increased ₦4.3 trillion. Stockbrokers reported that investors took advantage of the upside potential and price movements in DANGCEM, SEPLAT, BUACEM, BUAFOODS and ETERNA.

“… Buying momentum hit some stocks as investors’ eager sought dividend paying stocks took a boisterous turn across major sectors of the market in anticipation for the earnings scorecard”, Cowry Asset Limited said in a note. Despite the large weekly gain, activity level dampened as average volume and value traded declined by 42.4% and 25.6% to 519.4 million units and ₦11.6 billion respectively last week.

The top traded stocks by volume were TRANSCORP (273.5 million units), UBA (178.8 million units) and ACCESSCORP (128.9 million units), while UBA (₦5.4 billion), DANGSUGAR (₦5.1 billion) and TRANSCORP (₦4.7 billion) led in terms of value.

Stockbrokers noted that across the sectoral front, the banking and insurance indexes retreated by 1.63% and 4.10% week-on-week due to price declines in WEMABANK, GTCO, ROYALEX and CONHALLPLC.  In contrast, the Industrial index outperformed, gaining 23.20% week-on-week, driven by price increases and buy interest in DANGCEM and BUACEM.

This was trailed by the positive performances seen in Oil & Gas, and Consumer Goods Indexes which closed the week on a bullish note, rising by 11.57% and 5.29% respectively. The surge was fuelled by positive price movements in SEPLAT, JAPAULGOLD, ETERNA, BUAFOODS, NASCON and GEREGU.

Total traded volume declined by 42.44% to 2.98 billion units, while the number of trades dipped by 13.99% to 67,962 deals. The weekly traded value also showed lacklustre movement, dropping by 25.61% to N57.87 billion. Nigeria Eurobond Slumps after CBN Resumes OMO Auction

Top gainers include DANGCEM (+28.8%), BUACEMENT (+21.0%), SEPLAT (+21.0%) and ETERNA (+19.6%) TRIPPLEG (+32.2%), and SUNUASSU (+25.0%) with support from BUAFOODS (+13.3%), NASCON (+8.5%) and MTNN (+1.3%).

On the flip side, the Insurance and Banking indices declined 4.1% and 1.6% week on week respectively due to selling pressure on CORNERST (-15.5%), AIICO (-11.3%), UNITYBNK (-16.6%) and JAIZBANK (-15.1%). Other losers include VERITASK (-23.4%), CADBURY (-20.9%) and DEACAP (-19.2%), ROYALEX (-22%), TIP (-22%), and CADBURY (-21%).

Investor sentiment, as measured by market breadth weakened to -0.3x from previous weeks’ 1.1x as 34 stocks gained, 54 lost and 64 closed flat. Overall, the total market capitalisation of listed equities improved further by 8.32%, adding N4.3 trillion to close at N56.04 trillion. NGX’s year-to-date return strengthened to 36.95%.