Stock Market Return Declines Ahead of Earnings Season

Stock Market Return Declines Ahead of Earnings Season

The Nigerian stock market return slowed down to 21.3% on Friday, according to trading data from the Nigerian Exchange (NGX), ahead of the second quarter of the financial year 2022 earnings release.

Data from the local bourse shows that the equities market closed the month of June on a negative note. The benchmark index fell 3.4% month on month to 51,817.59 points.

Nigerian Exchange monthly report shows that the total value and volume traded in June grossed 5.8 billion units and ₦77.9 billion respectively. It was noted total equities market transactions increased by 195.05% to N607.45 billion from N205.88 billion in the previous month.

“In the new week, we expect to see the expectations of second quarter (Q2) numbers act as a catalyst to trigger more bullish sentiments”, Cowry Asset said in a market note.

On Friday, the local bourse gained weight to close the first trading session of the month of July on a positive note. Market indicators inched up marginally by 2 basis points to peg the All-Share-Index at 51,829.67 basis points from its previous close of 51,817.59bps.

Market capitalisation inched up on Friday by ₦6.56 billion to close at ₦27.94 trillion. However, despite the positive momentum, the market activities were mixed, as the total volume and value dipped by 43.06 per cent and 55.93 per cent, respectively.

Atlass Portfolios stockbroker said in a market that approximately 127.03 million units valued at ₦1.71 billion were transacted in 3,718 deals. GTCO emerged as the most traded stock in terms of volume, accounting for 18.53 per cent of the total volume of trades.

This was followed closely by UBA (17.53%), STERLNBANK (5.85%), OANDO (5.79%), and FBNH (4.71%) to complete the top five on the volume chart. Market data shows that GTCO was the most traded stock in value terms, with 28.14 per cent of the total value of trades on the exchange. 

CUTIX topped the advancers’ list with a price appreciation of 9.78 per cent. The company’s stock was trailed closely by PZ (6.25%), CUSTODIAN (4.29%), UNILEVER (3.38%), WEMABANK (2.19%), ACCESSCORP (1.62%), ZENITHBANK (0.69%), UCAP (0.39%), WAPCO (0.38%), SEPLAT (0.04%) and ten (10) others.

On the contrary, Atlass Portfolios stockbrokers wrote that sixteen (16) stocks also depreciated, topped by COURTVILLE with a price depreciation of 7.84 per cent, to close at ₦0.47.  NAHCO’s share price drops by 5.88%, NGXGROUP lost 3.26%, and OANDO dipped by 3.17%.

DANGSUGAR’s share price also fell by 1.84%, the share price of UBA slow down by 0.67%, and GTCO tumbled by 0.24%, while the market breadth closed positive, recording 19 gainers and 16 losers. READ: Yield on T-Bills Declines as Investors Go Short

NGX Banking (1.06%), NGX Insurance (3.59%) andNGX Oil/Gas (0.15%) indexes respectively. On the other hand, the NGX Consumer Goods Index and NGX Industrial Index declined by 0.40%, and 0.13% on a week-on-week comparison. #Stock Market Return Declines Ahead of Earnings Season