The Nigerian Exchange (NGX) increased after five trading sessions saw gains for equity investors totaling over N995 billion. Over the course of five trading sessions, investor buying appetite increased dramatically despite the higher yield on fixed-interest instruments.
Consequently, the benchmark index closed at 99,300.38 points, close to the noteworthy 100,000 mark, up 1.73% week over week, according to stockbrokers. The factors propelling this upward trend were high trade volumes, positive market internals, and strong purchasing sentiments, especially in blue-chip businesses in the mid- and medium-cap categories, Cowry Asset Management emailed investors.
Data from the local exchange show that the gain for the year thus far is 32.80%, which is less than the annual inflation rate of 33.68% in April 2024. With a price increase of +23%, FIDELITY topped the gainers chart, followed by BERGER PAINTS, which saw a price increase of 21%. FCMB (+18%), NASCON (+20%), and DANGSUGAR (+21%) are further gainers.
Conversely, unfavorable investor attitudes led to a sell-off in UHOMREIT, which saw a 59% decline in market value. While CILEASING dropped 14% of its market value, UNILEVER saw a 46% decline.
The market price of FTN COCOA decreased by 8%, while NPFMCRFBK fell by 11% as investors made portfolio adjustments before the start of the new trading month. Overall, the sectoral gauges showed good performance; nevertheless, the industrial goods sector which fell 0.13% due to declines in UHOMREIT, CILEASING, and WAPCO.
The Oil & Gas index increased by 9.08%, led by gains in SEPLAT, OANDO, ETERNA, and CONOIL, especially after the NNPC announced the SEPLAT and EXXONMOBIL asset purchase agreements earlier this week. According to stockbrokers, investor interest in FIDELITY, FCMB, UBA, and FBNH contributed to the banking sector’s 8.72% increase.
The insurance sector gained 3.88%, bolstered by CHIPLC, INTENEGINS, MANSARD, and NEM, thanks to strong 2023 financial results and attractive dividend payouts. The consumer goods sector also advanced by 2.04%, with contributions from DANGSUGAR, NASCON, NB, and TRANSCORP.
Meanwhile, the level of trading activities in the week was robust, with positive market breadth evidenced in total activities that produced 45 advancers as opposed to 27 decliners. Thus, the total traded volume inched further by 10.24% week on week to 2.19 billion units, while the total weekly traded value cleared lower by 23.12% week on week to N31.30 billion.
However, the total deals traded for the week increased by 2.27% week on week to 39,362 trades for the week. Overall, the equities market capitalisation of the Nigerian Exchange increased by N954.9 billion from N55.22 trillion to N56.17 trillion.
In its projection, Cowry Asset said the current bullish trend is expected to persist, driven by profit-taking and portfolio rebalancing as the new trading month approaches. Cowry Asset said market pullbacks are anticipated to enhance the index’s upward potential, supported by the ongoing dividend earnings season.
