Analysts optimistic of bullish trading as NGX gains N446.03bn w/w
By Motolani Oseni
Following a rebound, staged on the the last trading session of last week, market analysts have projected the continuation of bullish momentum into this week, as the market capitalization gained N446.03billion week-on-week (w/w) to close at N35.88trillion.
Recouping the prior session loss, the equities market of if the Nigerian Exchange Limited ( NGX) benchmark index ended 0.24 per cent stronger to settle at 65,558.91 points.
Consequently, the year-to-date (YTD) return rose to 27.92 per cent.
A sector-wise analysis revealed that the Consumer Goods and Insurance Services sectors have been particularly pronounced gainers, showcasing respective week-on-week increments of 11.58 per cent and 1.22 per cent.
Conversely, the Banking, Oil & Gas, and Industrial Goods sectors have encountered declines of 3.57 per cent, 2.40 per cent and 0.04 per cent correspondingly.
The market breadth for the week was negative as 32 equities appreciated in price, 46 equities depreciated in price, while 77 equities remained unchanged. Associated Bus Company led the gainers table by 41.67 per cent to close at 68 kobo, per share. Transnational Corporation followed with a gain of 39.42 per cent to close at N5.80, while Dangote Sugar Refinery went up by 35.71 per cent to close to N47.50, per share.
On the other side, Tantalizers led the decliners table by 27.50 per cent to close at 29 kobo, per share. Red Star Express followed with a loss of 17.53 per cent to close at N2.89, while DAAR Communications declined by 15.63 per cent to close at 27 kobo, per share.
Overall, a total turnover of 1.812 billion shares worth N29.299 billion in 31,163 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.689 billion shares valued at N29.407 billion that exchanged hands last week in 29,477 deals.
The Financial Services Industry (measured by volume) led the activity chart with 936.685 million shares valued at N10.116 billion traded in 12,886 deals; thus contributing 51.68 per cent and 34.53 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 461.589 million shares worth N2.333 billion in 3,451 deals, while the Consumer Goods Industry traded a turnover of 127.310 million shares worth N5.003 billion in 5,792 deals.
Trading in the top three equities Transnational Corporation, Fidelity Bank and Access Holdings (measured by volume) accounted for 693.533 million shares worth N5.030 billion in 5,450 deals, contributing 38.26 per cent and 17.17 per cent to the total equity turnover volume and value respectively.
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Looking ahead to the new week, analysts at Cowry Assets Management Limited stated that, “the prevailing trend of buoyant sentiment is expected to persist, supported by the ongoing digestion of robust economic data spotlighting Nigeria’s commendable output performance and positive trajectory.
“Nevertheless, the continued market response to elevated T-bill rates, juxtaposed with renewed interest in bargain opportunities and portfolio realignments, remains a focal point. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.”
Also Cordros Securities Limited said: “we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market. Overall, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
