Stocks Rally First Trading Day in Earnings-Packed Week

Stocks Rally First Trading Day in Earnings-Packed Week

Stocks listed on the Nigerian Exchange (NGX) rally the first trading day in an earnings-packed week. The extended rally is supported by activities of the listed companies that have started pumping their second quarter financial statement into the market.

Investors fortune expanded by N94.4 billion as stocks rally further today.

The expectation of a better earnings result appears to have raised investors’ sentiments following a strong portfolio rebalancing in the space.

As a result, the All-share index (NGX-ASI) appreciated by 0.47 per cent as the benchmark index closed higher at 38,849.08 points. The extended rally saw the local bourse’ year to date losses moderated to 3.5% as market capitalization advanced by N94.4 billion to N20.24 trillion.  

Positive sentiments continue to trail both medium and large capitalized stocks in anticipation of improved first half 2021 corporate earnings results, says Atlass Portfolios analysts in a market report.

Market breadth retained its positive status with 30 gainers versus 17 losers. NGX data shows that trading activities closed positive with the volume of stocks traded on the exchange appreciating by 7.08 per cent.

Meanwhile, the value of stocks traded today declined by 2.97 per cent. A total of 246.55 million units of shares valued at N2.24 billion, were traded in 4,676 deals.

FIDELITYBK led the volume chart, accounting for 12.39 per cent of the total volume of trades, followed by ACCESS (5.97%) UBA (5.62%) GTCO (5.18%), and WEMA (4.57%) to complete the top five on the volume chart.

GTCO led the value chart accounting for 16.87 per cent of the total value of trade on the exchange. OANDO, FTNCOCOA, ARDOVA topped the gainers’ chart, with their share prices advancing by 9.82 per cent, 9.76 per cent, and 9.75 per cent, respectively.

Read Also: NGX Ends Positive as Earnings, Share Buyback Drive Rally

UNIVINSURE led the losers’ table with its share price depreciating by 9.09 per cent to close at N0.20 after opening the day at N0.22.

Afrinvest said in its market report that performance across sectors under its coverage was bullish as 5 indices gained while 1 index lost.

The Oil & Gas index led the gainers, up 2.2% on the back of buying interest in OANDO (+9.8%) and ARDOVA (+9.7%).

Followed by the AFR-ICT and Banking indices which rose by 0.9% and 0.3% respectively due to gains in AIRTELAF (+2.3%), FIDELITY (+2.9%), and ACCESS (+2.2%). 

Similarly, the Consumer and Industrial Goods indices gained 0.3% apiece following price appreciation in FLOURMILL (+3.0%), DANGSUGAR (+1.1%), and WAPCO (+5.3%).

On the flip side, the Insurance index lost 0.4% due to selling pressure on LINKASSURE (-7.1%) and CHIPLC (-3.2%).

“In the next trading session, we expect the positive performance to be sustained barring the release of underperforming H1:2021 earnings results”, Afrinvest projected.

Stocks Rally First Trading Day in Earnings-Packed Week