The Nigerian Exchange (NGX) saw a N3.26 trillion increase in its equity market capitalization following the admission of Transcorp Power Plc through listing by introduction.
The market has begun to recover from the damaging effects of corporate earnings disappointments, which last week sparked losing streaks of N4 trillion and sapped consumer confidence. The local stock market saw a bull run last week, even though equity investors were clearly moving away from financial sector stocks.
Because of its alluring rates, the fixed income market has become a hub for alpha hunters, which has caused negative market breadth in the stock exchange. The All-Share Index (ASI), or market index, increased by a remarkable 2.61% week over week to reach 101,330.85 points, according to data from the local bourse.
The bullish performance caused market capitalisation to pop higher by 6.03% week-on-week. The growth level achieved by the Exchange was supported by a recent listing of TRANSPOWER.
In its market update, Cowry Asset Management Limited stated that investors enjoyed a substantial year-to-date return of 35.52%, resulting in a collective wealth accretion of N3.26 trillion compared to the previous week’s N1.83 trillion.
This performance underscores the dynamic interplay of market forces amid evolving economic conditions, stockbrokers said. Despite the overall bullish sentiment and the upward repricing of select Nigerian stocks, trading activity witnessed a significant surge throughout the week.
Stockbrokers reported that weekly deals accelerated by 6.38% to 51,557, while the average traded volume rose by 14.64% week on week to 2.16 billion units.
Additionally, the weekly average value moved impressively higher by 218.7% week on week, reaching N108.83 billion, which Cowry Assets said it is a reflection of an increased market participation and investor interest.
The sectoral performance for the week displayed weakness across most sectors, except the Industrial Goods Index, which recorded a modest gain of 1.59% week on week. This was attributed to positive price movements in BUACEMENT and LAFARGE.
Conversely, the Insurance, banking, and consumer goods sectors experienced downturns, losing 5.22%, 1.40%, and 1.21% week on week, respectively, due to retracements in the prices of key stocks such as GUINNESS, ETI, NEM, NASCON, UBA, FCMB, DANSUGAR, and AIICO.
The Oil & Gas index remained unchanged from the previous week’s close. Market performers include TRANSPOWER (46%), JULI (33%), TRANSCORP (19%), PZ CUSSONS (19), FBNH (15.3) and MTNN (10%).
On the loser track were: GUINNESS (17.5%), ETI (17%), NEM (16.7%), CHAMS (16%), and Nigerian Breweries (11%)
Cowry Research anticipates the prevailing bullish sentiment to persist in the new week. This expectation is based on the anticipation of more corporate announcements and continued portfolio rebalancing by investors seeking alpha.
Overall, the equities market capitalisation of the Nigerian Exchange rose by 3.26 trillion over a week to settle at N57.29 trillion.
