NGX Equities Increases By N157bn As FMCG Stocks Rally

SEC Warns Nigerians Against Investing In FinAfrica, Poyoyo

Tuesday saw another increase for the Nigerian Exchange (NGX), as equity investors bought into the market despite economic uncertainty. Following the quest for bargains, the stock market’s year-to-date return shot up, outpacing the annual inflation rate of 24.08%.

As the market saw a similar trend that began at the start of the week, other key performance indicators increased. A gain of 0.44% was recorded by the NGX All Share Index, which closed at 65,488.67 points.

Increased buy-side interest in noteworthy companies including BUAFOODS 7.91%, DANGSUGAR 3.89%, GUINNESS 2.81%, TRANSCORP 2.28%, and other listed securities was the main driver of this upward trend.

The index’s year-to-date return has increased to 27.78%, according to data from the local market, while the monthly returns have increased to 1.79%. The whole trade value increased by 3.26 percent to N4.12 billion. In addition, the transaction volume increased by 26.72%, with 5,895 trades for a total of 293.46 million units moved.

Activity increased as volume and value exchanged increased by 26.7%, 3.3%, and 293.5 million units, or 4.1 billion, respectively. Although favorably weighted, performance across covering sectors was uneven, with 3 indices rising and 2 indices falling, while the Industrial Goods index finished unchanged.

Due to price increases in BUAFOODS (+7.9%), DANGSUGAR (+3.9%), CORNERST (+9.8%), and CHIPLC (+3.5%), the Consumer Goods and Insurance indexes increased by 3.8% and 0.5%, respectively.

Trailing, the AFR-ICT index rose 1bp due to gains in CWG (+9.7%). Conversely, the Banking and Oil & Gas indices dipped 0.9% and 0.2% respectively, following losses in ACCESSCORP (-1.2%), UBA (-1.4%), and ETERNA (-4.8%).

Despite the uptrend, investor sentiment, as measured by market breadth, weakened to -0.14x versus 0.23x previously recorded as 16 listed companies stocks advanced, 26 declined, and 71 closed flat in the local bourse on Tuesday.

In the next trading session, Afrinvest expects a mild gain on the local bourse in the absence of any negative trigger. Overall, equities market capitalisation advanced by ₦156.7 billion to ₦35.8 trillion.

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