Stock Market Delivers 20% Return in 2022
The Nigerian Exchange (NGX) performance remained upbeat with 20% return amidst rising inflation pressures in the financial year 2022, according to trading data from the local bourse.
Despite 500 basis points increase in monetary policy rate, investors stayed glued in the equities space due to attractiveness of fundamentally strong companies with history of dividend payments.
With about 20% capital gain in the year, the equities index performance provided a solid cover for naira assets exposure to rising inflation as value hunters positioned in attractive stocks.
In the last trading session, the Nigerian equity market closed trading activities for the year on a bullish note, as the market performance indicators surged by +1.89%, according to stockbrokers notes.
Both NGX All-share index and market capitalisation advanced amidst strong buying interest that greeted the local bourse ahead of 2023 election, with additional effects of Santa Claus rally.
Trading data shows that year to date return closed at +19.98% for the year, which was 13.91% point higher than +6.07% recorded in 2021, according to stockbrokers at Atlass Portfolios limited.
The market index or All-Share Index added 951.06 basis points on the last trading day in 2022, representing an increase of +1.89% to close at 51,251.06. As a result of the solid positioning in value, growth stocks, the equities market capitalisation gained ₦518.01 billion.
With such humongous share price movement, market capitalisation advanced to ₦27,915.07 trillion from ₦27,397.06 trillion. Market activities were also up, as the total volume and total value traded for the day increased by +90.32% and +0.44% respectively.
Approximately 890.68 million units valued at ₦7,355.67 million were transacted in 3,566 deals. Taking advantage of the bullish run, SOVRENINS was the most traded stock in terms of volume, accounting for 58.82% of the total volume of trades.
The stock was followed by ACCESSCORP (19.82%), STERLNBANK (4.47%), PRESCO (1.39%), and MBENEFIT (1.32%) to complete the top 5 on the volume chart. Meanwhile PRESCO was also the most traded stock in value terms, with 21.90% of the total value of trades on the exchange.
PRESCO and CAVERTON both topped the advancers’ chart with a price appreciation of 10.00 percent.
These top two gainers were trailed by AIRTELAFRI (9.88%), CWG (9.78%), MORISON (9.60%), IKEJAHOTEL (9.38%), and fifteen (15) others. FCMB (+8.76), WEMABANK (+8.33), CHAMPION (+6.38%), NAHCO (+1.59%), and UCAP (+0.72%) also enjoyed investors’ patronage
Atlass Portfolios Limited said in its note that Seventeen stocks depreciated, and ROYALEX was the top loser, with a price depreciation of -9.40% to close at ₦1.06. >>NGX Balloons as Stockbrokers Bet On Mid-Cap Shares
FIDSON lost 8.16% on the last trading session in 2022 followed closely by 7.66% share price down in UACN while MBENEFIT shed 6.90%, and ETI fell by 6.19%.
Overall, the market breadth closed positive, recording 21 gainers and 17 losers.’ In addition, the market sector performance closed par, as two out of the five major market sectors declined.
The Banking sector index dropped by 2.86%, followed by the Oil & Gas sector which shed 0.41%, while two were up as well. The Insurance and Consumer goods sectors indices grew by +0.40%, and +0.09% respectively. The Industrial sector closed unchanged. # Stock Market Delivers 20% Return in 2022
