The total wealth of shareholders and equity investors on the Nigerian Exchange (NGX) increased by almost N481 billion in the last week as the market awaits the announcement of big banks’ earnings.
Stockbrokers reported in a market update that robust confidence has returned to the local exchange, propelled by a rally in international shares amid concerns about an American recession.
Following this, investors began to pay more attention to purchases in all major market sectors as they processed the latest corporate earnings and changes in the fixed income market.
The Nigerian equity market ended the week on a high note, driven by continued interest in OANDO (+60.47%) and rekindled interest in UBA (+14.71%), ZENITHBANK (+7.92%), and MTNN (+5.16%).
With renewed interest in banking tickers, the index appreciated by +5.14% as the Tier-1 banks closed in green, with UBA (+14.71%) leading the bunch, according to top stockbrokers in the market.
The Consumer Goods (+2.35%), Insurance (+1.79%), and Oil & Gas (+0.97%) indices advanced on the back of strong demand in NB (+19.23%), VERITASKAP (+24.21%), and OANDO (+60.47%), respectively.
However, the Industrial Goods index shed -3.67% following selloffs in BUACEMENT (-9.99%). As the week locked down, the NGX All-Share Index closed higher, breaking through the 98,000-point psychological barrier, thereby extending the mark-up phase, according to Cowry Asset Limited.
Year to date, the return of the exchange has climbed to 31.85% at the close of trading session on Friday, racing towards annual inflation rate of 34.19% as latest buying interest reflated market performance.
Stockbrokers hinted that the market saw above-average trading volumes with positive market internals, reflecting strategic position-taking in high-value stocks and blue-chip companies.
The benchmark index inched higher 0.87% on a week-on-week basis, closing at 98,592.12 points, driven by renewed buying interest in financial and consumer goods stocks. The demand, according to stockbrokers, was fuelled by improved sentiment.
Data from the Nigerian Exchange showed that the total market capitalisation of listed equities surged by 0.87% week-on-week to N55.98 trillion, with the exchange, recording 46 advancers this week compared to 38 decliners.
Sectoral Performance
Key sectors on NGX saw weekly gain except for the Industrial Index, which retreated by 3.67% on the back of price declines in BUACEMENT, BERGER PAINTS, and JOHNHOLT.
This was followed by gains in consumer goods, NGX-Insurance, and marginal gains in the NGX-Oil & Gas indices, which rose by 2.35%, 1.79%, and 0.97% respectively.
These gains were driven by strong buying sentiment in stocks such as UBA, FBNH, OKOMUOIL, NIGERIAN BREWERIES, SOVRENINS, VERITASKAP, OANDO, and ETERNA.
However, despite the positive market breadth, overall market trading activity was somewhat negative this week. There was a 5.9% week-on-week increase in the total number of weekly deals, which rose to 47,451 trades.
Total volumes traded in the week declined by 21.04% to 2.68 billion units, while the total value of trades also decreased by 6.3% to N49.02 billion.
The stocks that moved the market include: OANDO (+61%), RTBRISCOE (+51%), JAPAULGOLD (+36%), ACADEMY (+35%), and UNITED CAPITAL (+31%).
The market’s top losers were CHAMPION (-15%), BUACEMENT (-10%), and UPL (-10%), UNIONDICON (-10%), and DEAP CAPITAL (-10%). Overall, the equities market capitalisation grew by N480.83 billion during the week to N55.98 trillion.
