Nigerian Exchange Rises by N121.5bn Amidst Earnings Festival

Nigerian Exchange Rises by N121.5bn Amidst Earnings Festival

The Nigerian Exchange (NGX) equities investors gained more than N121 billion amidst the earnings festival in the local bourse in the just concluded week. As against expectations, the weekly gain was pushed by small and mid-capitalised stocks, though selloffs in banking names reversed amidst earnings releases.

The All-Share Index (ASI) climbed 0.33% week-on-week, ultimately closing at 67,136.58 points as investors reacted positively to the impressive third-quarter corporate earnings. Racing ahead of the annual inflation rate of 26.72%, the year-to-date return for the market closed higher at 30.99%.

While mixed sentiments prevailed, the market’s broader upward trend remained intact despite ongoing volatility and shifts in the index, according to Cowry Asset Limited.

Despite a subdued start to the week, the Nigerian equities market witnessed a return of positive sentiments, driven by investors’ interest in GEREGU (+20.6%) and SEPLAT (+3.7%) which outweighed losses in MTNN (-1.2%) and STANBIC (-2.6%).

Trading activity revealed a mixed picture. While the weekly deal count decreased by 1.25% week-on-week to 28,933 deals, the average traded volume decreased by 3.36%, reaching 1.45 billion units.

Switching gears, the weekly average value witnessed a substantial increase of 41.98% week-on-week, amounting to N25.42 billion.

Stockbrokers said the ongoing Q3 earnings season could keep the market performance positive.   According to stockbrokers’ notes, performance across sectors was mixed following losses in the Insurance, Industrial, and Consumer Goods indexes.

Data from NGX showed that Insurance lost 1.1% and Industrial Goods declined by 0.2%. On the other hand, Oil and Gas gained 2.1% and Banking popped up by 1.0%. Meanwhile, the Consumer Goods index remained unchanged.

The Oil & Gas and Banking indexes recorded gains, thanks to positive investor sentiment in various stocks, including CHAMS, JAPAULGOLD, JAIZBANK, SEPLAT, ACCESSCORP, and FBNH.

Key performers during the week included CHAMS, GEREGU, MULTIVERSE, UACN, and TANTALIZER, with their share prices posting remarkable gains despite the market’s volatility. #Naira Devaluation Deepens Economic Crisis in Nigeria

In contrast, CHIPLC, SUNUASSUR, NSLTECH, MCNICHOLS, and PRESTIGE experienced declines in their share prices. In its market update, Cowry Research expects mixed sentiments as investors and bargain hunters continue to digest the earnings scorecard released so far. Overall, equities market capitalisation gained N121.51 billion to N36.88 trillion.