Investors in equities made more than N17 billion as the Nigerian Exchange (NGX) rebounded on fresh demand in stocks of firms with stronger, more stable fundamentals.
For the first time since April 16, 2024, the market index or all-share index crossed the 100,000 level. Cowry Asset Limited stated in a report that the buy attitude stemming from fund managers’ window dressing efforts was the primary driver of this milestone.
The benchmark index increased by 0.32%, according to data from the local exchange, and settled above 100,057.49 points for the first time since 16 April 2024. Investors were positioning themselves in small and large-cap corporates ahead of the half-year reporting season.
Stockbrokers noted that trading activity was subdued. The total traded volume dropped by 19.69% week on week to 2.65 billion units, while the total weekly traded value decreased slightly by 5.98% week on week to N49.98 billion.
However, reversing the prior week’s performance, the total number of trades for the week improved by 51.11% week on week to 41,610 deals, Cowry Asset Limited said, citing data from the local bourse.
Given the market direction, sectoral performance was largely positive this week, except for the consumer goods (0.56%) and industrial goods (0.33%) indices.
The negative movement was attributed to negative price movements in BETAGLASS and WAPCO. Conversely, the Oil & Gas and Insurance indices led the gainers’ chart with increases of 5.71% and 3.33%, respectively.
The banking index also reported gains of 1.14% week-on-week as a result of gains in UCAP, MBENEFIT, SEPLAT, FBNH, and FIDELITYBK.
Cowry Asset Limited said at the close of the week, notable performers such as CWG (+45%), FTNCOCOA (+22%), UCAP (+22%), JOHNHOLT (+20%), and MBENEFIT (+20%) emerged as the best performing securities. Conversely, negative investor sentiment led to sell-offs in JAIZBANK (-11%), DAARCOMM (-11%), CHAMPION (-11%), UPL (-9%), and BETAGLASS (-9%), positioning these stocks as the top losers for the week.
“Looking ahead to the coming week, it is anticipated that the new trading quarter will commence strongly, albeit with mixed sentiment from market investors.
“The market will focus on the forthcoming earnings reporting season and interim dividends from the banking sector and a few other companies.
“The changing market structure on the NGX continues as bargain hunters take advantage of recent pullbacks and corrections to buy into value amidst ongoing portfolio repositioning ahead of Q2 numbers, ushering in the second half of the year. Investors are advised to seize opportunities in stocks with strong fundamentals,” Cowry Asset Limited told investors in a note.
Consequently, the market capitalization of listed equities increased by 0.32% week over week to N56.60 trillion, despite tepid investor sentiment and waning market activity levels.
Equity investors gained a total of N178.05 billion from two out of the five trading sessions this week, bringing the year-to-date return of the index to 33.81%. Total volume and value of trades, despite positive market breadth with 48 weekly gainers compared to 35 weekly losers.
