Nigerian Exchange Climbs by N995bn over 5-Day Rallies
The Nigerian Exchange rose as equity investors gained approximately N995 billion in five trading sessions. Despite the higher yield on fixed interest securities, investor buying appetite increased significantly over the course of five trading sessions.
As a result, the benchmark index advanced by 1.73% week-on-week to close at 99,300.38 points, nearing the significant 100,000 mark, according to stockbrokers.
High trade volumes, favorable market internals, and robust buying sentiments—particularly in blue-chip companies in the mid- and medium-cap categories—were the driving forces behind this upward trend, Cowry Asset Management informed investors via email.
The year-to-date gain reached 32.80%, according to data from the local exchange, trailing the annual inflation rate of 33.68% in April 2024. On the gainers chart, FIDELITY topped the list with a +23% price increase, followed by BERGER PAINTS with a 21% price increase. Additional gainers are FCMB (+18%), NASCON (+20%), and DANGSUGAR (+21%).
On the other hand, negative investor sentiments resulted in a sell-off in UHOMREIT, which lost 59% of its market value. UNILEVER fell by 46%, while CILEASING lost 14% of its market value.
NPFMCRFBK fell by 11%, while the FTN COCOA market price fell by 8% as investors adjusted their portfolios ahead of the new trading month. The sectoral gauges performed generally well, with the exception of the industrial Goods sector, which fell 0.13% due to declines in UHOMREIT, CILEASING, and WAPCO.
The Oil & Gas index increased by 9.08%, led by gains in SEPLAT, OANDO, ETERNA, and CONOIL, especially after the NNPC announced the SEPLAT and EXXONMOBIL asset purchase agreements earlier this week. According to stockbrokers, investor interest in FIDELITY, FCMB, UBA, and FBNH contributed to the banking sector’s 8.72% increase.
The insurance sector gained 3.88%, bolstered by CHIPLC, INTENEGINS, MANSARD, and NEM, thanks to strong 2023 financial results and attractive dividend payouts. The consumer goods sector also advanced by 2.04%, with contributions from DANGSUGAR, NASCON, NB, and TRANSCORP.
Meanwhile, the level of trading activities in the week was robust, with positive market breadth evidenced in total activities that produced 45 advancers as opposed to 27 decliners. Thus, the total traded volume inched further by 10.24% week on week to 2.19 billion units, while the total weekly traded value cleared lower by 23.12% week on week to N31.30 billion.
However, the total deals traded for the week increased by 2.27% week on week to 39,362 trades for the week. Overall, the equities market capitalisation of the Nigerian Exchange increased by N954.9 billion from N55.22 trillion to N56.17 trillion.
In its projection, Cowry Asset said the current bullish trend is expected to persist, driven by profit-taking and portfolio rebalancing as the new trading month approaches. Cowry Asset said market pullbacks are anticipated to enhance the index’s upward potential, supported by the ongoing dividend earnings season. #Nigerian Exchange Climbs by N995bn over 5-Day Rallies Naira Suffers Big, CBN Goes Ballistic Against FX Whale
