The equities sector of the Nigerian Exchange (NGX) posted a big gain in June as a positive atmosphere prompted a bargain hunt for growth and value stocks. Continued buying momentum has permeated the atmosphere, with assets of alpha-seekers increasing by around N3 trillion this month.
Afrinvest said in a market note to investors that the rally in the domestic stock market has given investors renewed optimism after the new government’s early start to implement expected market-oriented policies. said it was because
Futureview Financial Services said despite concerns, investor confidence remains strong, fueled by positive sentiment around the peaceful transfer of power and favorable policies by President Bola Tinub’s government.
The domestic stock market set new records in June with sustained gains boosting key performance indicators despite the absence of overseas portfolio investors. Trading has accelerated from new highs this year and is approaching Nigerian inflation levels as NGX ended a four-year losing streak in June. The stock market rose 18.9% in the first half of the year, according to market data.
Futureview Financial Services also said in a note that the exchange posted its best monthly performance in more than two years, citing increased demand for long-term products, changes in the foreign exchange framework, Factors such as outages affected performance, he added. bank president.
An influx of local investors and favorable policies contributed to market stability and increased capital gains. Futureview expects the market’s strong performance to continue into earnings season, driven by investor expectations for attractive dividends and a promising yield environment. Trading activity improved during the month, with June’s average volume and value rising 15.5% and 42.1% to £684.3m and £10.7bn, respectively. ACCESSCORP (1.6 billion shares), GTCO (900 million shares), and UBA (800 million shares) were the top trading stocks in the same month.
Meanwhile, BUACEMENT (₦65.7 billion), AIRTELAF (₦46.4 billion) and GTCO (₦30 billion) topped the value table this month. Afrinvest said the performance of all sectors covered was positive as all indices posted monthly gains.
The insurance and oil & gas indices that led the rise were MANSARD (+21.5%), AIICO (+16.4%), TOTAL (+28.7%) and SEPLAT (+16.7%). The Banks Index and AFR-ICT Index followed suit, rising 23.3% and 10.3% respectively on a monthly basis, reflecting price increases for Zenith (+18.1%), Air Terraf (+12.3%) and MTNN (+8.9%). bottom.
Similarly, the Consumer Goods Index and the Industrial Goods Index rose by 5.5% and 0.1% m/m, respectively, due to price increases in Bua Foods (+4.5%), NB (+7.7%) and Bua Cement (+0.3%).
In a market report, Afrinvest said 94 stocks were up, 22 were down and 37 were flat, with investor sentiment as measured by market width improving from 1.6x in May to 1.9x.
The best performers this month were FTNCOCOA, up 195.1%, ETERNA, up 172.7%, and TRANSCHOT, up 162.6%.
Meanwhile, John Holt lost 45.5% of its market value in June, followed by McNichols 13.0% and Ellalac 11.0%, making it the worst-performing stock on the ticker. Overall, market capitalization increased by £2.8 trillion to £33.2 trillion in June 2023.
