Nigerian Exchange Hits N34.3trn as Stockholders Gain N1.13trn
The equities segment of the Nigerian Exchange (NGX) has expanded further, gaining about N1.1 trillion over the last five trading sessions amidst a sustained rally driven by improved buying sentiment.
The local exchange year-to-date return which settled at 23% on Friday’s close has watered down pressures from the rising consumer price index – Nigeria’s annual inflation rate printed at 22.41% in June 2023.
Last week, data from the local bourse showed that the first trading session was bullish. Then, the market index or NGX All-share index closed at 61,949.24 points, registering a broad 161 basis points increase compared to the previous week, Futureview Financial Services told investors in an update.
Stockbrokers said in the market update that this early boost set the tone for the trading sessions to follow, with bullish sentiments dominating the week.
They noted that heightened interest and demand for banking and insurance stocks propelled the All-Share Index to reach yet another remarkable 15-year high, culminating at 63,040.87 points by the end of Friday’s session.
Overall, the market achieved a noteworthy week-to-date gain of 340 basis points, further adding to the year-to-date gain of 23%, Futureview told investors in its market update.
A total of 9.831 billion shares worth N145.408 billion in 54,478 deals was traded by investors on the floor of the Exchange, in contrast to a total of 3.369 billion shares valued at N41.986 billion that exchanged hands last week in 39,764 deals.
According to stock market analysts, the financial services industry led the activity chart with 8.349 billion shares valued at N127.944 billion traded in 27,291 deals; thus contributing 84.92% and 87.99% to the total equity turnover volume and value respectively.
The conglomerate’s industry followed with 420.770 million shares worth N1.683 billion in 2,840 deals. The third place was the ICT Industry, with a turnover of 220.121 million shares worth N2.198 billion in 3,237 deals.
Stockbrokers said trading in the top three equities namely FBNH Holding Plc, FCMB Group Plc, and United Bank for Africa accounted for 6.071 billion shares worth N102.488 billion in 7,505 deals, contributing 61.75% and 70.48% to the total equity turnover volume and value respectively.
Data from the local bourse showed that seventy-eight equities appreciated in price during the week higher than seventy-seven equities in the previous week.
On the other hand, twenty-five equities depreciated in price lower than fifty-nine in the previous week, while fifty-three equities remained unchanged, higher than twenty recorded in the previous week.
On Friday, DANGCEM gained 3.48%, PRESCO jumped by 10%, FBNH surged by 6.84%, and STANBIC saw a 9.84% price appreciation. Also, GTCO gained 2.09% during the trading session, while ACCESSCORP rose by 2.18%, then DANGSUGAR inched higher by 1.85% while MRS appreciated by 8.98%.
Leading the weekly gainers’ chart, JAPAULGOLD gained 59%, CHAMS advanced by 57%, and ETRANZACT popped up by 46%. DANGCEM inched upward by 5.3% last week, STANBIC jumped by 17.9%, and FBNH spiked by 19.1%.
Conversely, WAPIC lost 27% of its market value to selloffs. LASACO saw a 17% price depreciation, and CHAMPION went down 14%, leading the laggards’ chart.
From a sectoral standpoint, the Banking index surged by 9.8%, Oil and Gas rose by 7.2%, the Industrial Goods index spiked by 2.2%, and the Insurance index popped up 0.7% while the Consumer Goods index declined by 0.2%.
“As we enter the new reporting and earning seasons, investors and portfolio managers are expected to engage in sectoral portfolio rebalancing.
The market’s overall resilience and growth potential make it an attractive investment destination, with opportunities for both short-term gains and long-term capital appreciation”, Cowry Asset Management Limited told investors in an update.
Cordros Capital Limited told investors that with the half-year earnings season on the horizon, it believes investors will look for clues on the sustainability of the decent corporate earnings released for Q1-2023.
However, market analysts said they expect mixed market performance in the week ahead as bargain hunting in dividend-paying stocks will be matched by intermittent profit-taking activities.
Overall, key performance indicators – the NGX All-Share Index and market capitalisation- appreciated by 3.40% to close the week at 63,040.41 and N34.326 trillion respectively. #Nigerian Exchange Hits N34.3trn as Stockholders Gain N1.13trn UK Labour Productivity, House Price Slump