Nigerian Exchange Rises By N1.4trn in August

Nigerian Exchange Rises By N1.4trn in August

The Nigerian Exchange (NGX) rose by N1.4 trillion in the month of August following strong buying sentiments witnessed across tickers. The Nigerian Exchange All-share index rose 3.44% to 66.548.99 points, a level seen last in March 2008.

In August, year-to-date return closed near 30% following the size of gain reported in the domestic bourse. Data from the local bourse showed market return settled at 29.8% in the month, far ahead of an annual inflation rate of 24.08%, according to the statistics office. 

In its market update, Afrinvest said the uptick was fuelled by a persistent search for gains, driven by market-stimulating corporate actions and dividend payments.

Surprisingly, equities investors started the new month in a more rather bullish manner after a positive 3.44% gain in August, the benchmark index of the local bourse gained for another week, registering a 3.00% increase week-on-week.

The Nigerian Exchange All-share index (ASI) recorded a new all-time high of 67,527.19 points in the midst of weaker broader market gains and momentum.

As a result, the total market capitalization of listed equities also experienced a concurrent uptick of 3.00% week-on-week, reaching a noteworthy N36.95 trillion compared to the preceding week’s value of N35.88 trillion.

Thus, equities investors have gained N1.08 trillion, pushing year-to-date return higher to 31.76%, underscoring the Nigerian market’s commendable resilience in the face of prevailing global uncertainties.

On sector performance, the Consumer Goods sector emerged as the leading gainer this week with +7.58% and was followed by the oil & gas, banking, industrial and Insurance sectors.

The breakdown showed that the oil and gas index rose by +5.38%, the banking index advanced by 5.11% while industrial stock got 2.00% push-up and the insurance sector rose 0.80%.

Key market players such as NAHCO, DANGSUGAR, SEPLAT, MBENEFIT, and LASACO have significantly contributed to these sectoral gains. 

Trading activity was heavy last week volumes and value spiked, according to data from the Nigerian Exchange. Trading activity levels mirrored the market’s broad gauge, as the total trading volume and value grew by 38.5% and 12.0% week on week respectively.

Meanwhile, the weekly deals registered a 30.72% increase, reaching a total of 40,736 deals. The average traded volume witnessed a robust surge of 38.48%, settling at 2.51 billion units.

The weekly average value surged 12.01%, measuring N32.82 billion in contrast to the preceding week’s figure of N29.29 billion.

NAHCO, led the charge with a remarkable surge of 42%, closely trailed by ABCTRANS at 40%, and DANGSUGAR at 27%. Conversely, MAYBAKER dropped by 12%, while LINKASSURE and ELLAHLAKES went down by 10% and 7% due to adverse price movements.

Cowry Asset stockbrokers said they anticipate that the market sentiment will remain mixed due to ongoing portfolio realignments.

They said this will be influenced by a combination of bargain hunting and uncertainty regarding future money market yields, particularly in light of the upcoming earnings reports from first-tier banks and the continuation of sectoral rotation.

In its market update, stock analysts at Cordros Capital said they anticipate mixed sentiments in the week ahead, as investors continue to cherry-pick fundamentally sound stocks based on recent corporate actions.

However, traders acknowledge the possibility of profit-taking activities on stocks that have experienced notable appreciation in recent weeks. #Nigerian Exchange Rises By N1.4trn in August NGX Loses N622bn to Selloffs in DANGCEM, MTNN, FBNH