Business

Equities market gains N1.7trn amid Nigeria’s economic reforms

NGX

By Motolani Oseni

The Nigerian Exchange (NGX) gains N1.7 trillion last week as economic reforms boosted investors’ sentiments.

The market saw increased investors’ position in banking names, telecom giants’ shares, and some other financial service companies’ stocks. Though, there was a pullback on Friday.

Then, the local bourse lost ₦106 billion to profit-taking, compared with weekly gain, the amount failed to move key indices downward significantly.

Sectoral performance was broadly positive as NGX Banking index led with a weekly growth of 12.6 per cent. NGX Oil & Gas index recorded a weekly gain of 11.9 per cent, while NGX Insurance index appreciated by 9.0 per cent W-o-W.

NGX Consumer Goods index gained 4.1 per cent, while NGX Industrial Goods index up by 5.8 per cent for the week.

Market breadth for the week was positive as 77 equities appreciated in price, 24 equities depreciated in price, while 55 equities remained unchanged. FTN Cocoa Processors led the gainers table by 45.16 per cent to close at N1.35, per share. Unity Bank followed with a gain of 41.67 per cent to close at N1.02, while Coronation Insurance went up by 40.43 per cent to close to 66 kobo, per share.

On the other side, The Initiates led the decliners table by 25 per cent to close at 39 kobo, per share. John Holt followed with a loss of 17.86 per cent to close at N1.15, while Associated Bus Company declined by 12.82 per cent to close at 34 kobo, per share.

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Overall, a total turnover of 4.276 billion shares worth N62.176 billion in 44,344 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.196 billion shares valued at N45.971 billion that exchanged hands previous week in 31,655 deals.

The Financial Services Industry (measured by volume) led the activity chart with 3.303 billion shares valued at N45.244 billion traded in 23,490 deals; contributing 77.26 per cent and 72.77 per cent to the total equity turnover volume and value respectively.

The Oil and Gas Industry followed with 247.383 million shares worth N2.368 billion in 3,561 deals, while the Consumer Goods Industry traded a turnover of 223.315 million shares worth N4.640 billion in 5,982 deals.

Trading in the top three equities; United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO) and Access Holdings (measured by volume) accounted for 1.475 billion shares worth N27.648 billion in 8,875 deals, contributing 34.50 per cent and 44.47 per cent to the total equity turnover volume and value respectively.

In the week ahead, analysts at Cordros Securities Limited said: “we expect profit-taking activities following the recent rally in the market. However, we expect this to be tempered by bargain-hunting activities from “early bird” investors ahead of the H1, 2023 earnings season.

“Overall, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”

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Ihesiulo Grace

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