Trading statistics from the previous week show that the stock market’s total return for the year increased to 6% as the Nigerian Exchange (NGX) continued its uptrend. In the middle of earnings reports and dividend announcements, the Nigerian stock exchange has been on a winning streak.
Despite uncertainty in the local economy ahead of the 2023 election, a very excellent performance by several bellwether continues to fuel investors’ purchasing appetite in select growth businesses, driving key performance indicators higher on the stock market.
The All-Share index increased by 0.2% to 54,327.30 points, according to data from the Exchange, powered by increases in MTNN (+1.7%), DANGCEM (+1.2%), and WAPCO (+1.4%).
Consequently, market capitalisation increased by ₦62.2 billion to ₦29.6 trillion while year-to-date return improved to 6.0%, stockbrokers said in a market brief shared with clients.
Though the stock market size reflated, the activity level dampened. Transactions in the Nigerian Exchange declined as average volume and value traded fell 75.1% and 17.4% sequentially to 188.9 million units and ₦4.5 billion, Afrinvest told investors in an email.
The most traded stocks by volume were GTCO (103.6m units), UNIVINSURE (92.4m units), and TRANSCORP (51.8m units) while GEREGU (₦4.5bn), GTCO (₦2.6bn), and AIRTELAF (₦2.5bn) led by value.
In its market brief, Afrinvest told investors that performance across sectors under its coverage varied as 3 of the 6 indices advanced while the remaining 3 closed in the negative. According to the investment firm, the AFR-ICT index led the advancers, up 0.7% weekly, following price appreciation in MTNN (+1.7%).
Trailing, the Industrial Goods and Oil & Gas indices rose 0.6% w/w apiece buoyed by gains in DANGCEM (+1.2%), WAPCO (+1.4%), CONOIL (+20.9%), and OANDO (+1.6%). Conversely, sell pressure on AIICO (-4.8%), MBENEFIT (-11.1%), and CORNERST (-6.3%) drove the Insurance index lower by 3.3%.
Also, the Banking and Consumer Goods indices fell 0.9% and 0.6% week on week respectively due to selloffs on FIDELITY (-7.0%), STERLING (-7.4%), NB (-3.1%) and CHAMPION (-8.2%).
Investor sentiment as measured by market breadth waned to -0.3x from 0.4x in the prior week, as 22 stocks gained, 44 lost while 86 closed flat. TRIPPLEG (+30.5%), INTENEGI (+25.3%), and CONOIL (+20.9%) led the top gainers.
On the other hand, FTNCOCOA lost 15.2% of its market value last week. PRESTIGE was priced down by 13.0% and JAPAULGO declined by 11.8%. In the coming week, analysts said they expect a mildly bearish market performance on account of dampened investor sentiment.
