Bullish Sentiment Spurs Investors’ Gain To N1.17tn In Week
As investors keep up with positive sentiment and buy companies’ stocks with sound fundamentals, the Nigerian stock market is expected to continue on a bull run in the new week, heading against rising insecurity, domestic supply chain disruptions, localised food shortages and inflationary pressures.
Last week was quite eventful with notable happenings among which was the increase reported in the Purchasing Managers’ Index (PMI), rising to 55.8 per cent in April from 54.1 per cent in March, which is higher than the long-run series.
Also, the Organization of Petroleum Exporting Countries and its allies (OPEC+) revealed Nigeria’s private sector had continued to gain momentum even as the hydrocarbons sector showed a strong recovery that might further bolster the country’s economic recovery.
At the close of the week’s trading session, the Nigerian Exchange Limited All-Share Index and market capitalization appreciated by 4.25 per cent to close at 53,098.46 basis points (bps) and N28.63 trillion respectively, leaving investors with a gain of N1.17 trillion.
McNichols Consolidated, Royal Exchange, Champion Breweries, International Breweries and Okomu Oil Palm were the top five capitalized stocks that lifted the NGX to sustain five weeks of consecutive gains as their share prices rose by 59.52 per cent, 51.49 per cent, 30.84 per cent, 30.37 per cent and 26.47 to close at N1.34, N1.53, N4.37, N8.80 and N215 respectively.
All other indices traded on the floor of NGX finished higher except NGX Insurance, NGX AFR Div Yield, and NGX Sovereign bond indices which depreciated at 1.92 per cent, 2.82 per cent, and 0.02 per cent, even as the NGX Asem index closed flat.
The sectoral performance showed most of the sector gauged closed in positive territory amid sustained buy pressure. Notably, the consumer goods, industrial goods, NGX30 and oil and gas indices increased by 5.38 per cent, 2.33 per cent, 5.72 per cent and 7.02 per cent to close at 698.32bps, 2,308.32bps, 2,060.70bps and 554.62bps respectively.
A total turnover of 1.816 billion shares, worth N27.194 billion in 36,286 deals was traded by investors in contrast to a total of 1,598 billion shares valued at N19.603 billion that exchanged hands in the week before in 21,494 deals.
Measured by volume, the financial services industry led the activity chart with 904.860 million shares valued at N8.498 billion traded in 12,883 deals and contributing 49.82 per cent and 31.25 per cent to the total equity turnover volume and value respectively.
Followed by the conglomerate’s industry with 263.830 million shares worth N540.313 million in 1,651 deals, the consumer goods industry traded along with a turnover of 238.964 million shares worth N5.816 billion in 7,635 deals.
Transnational Corporation, Guaranty Trust Holding Company and Jaiz Bank were the top three traded equities by volume, and accounted for 459,179 million shares worth N3.294 billion in 3,645 deals, contributing 25.28 per cent and 12.11 per cent to the total equity turnover volume and value respectively.
“In the new week, we expect equities to trade higher as positive Q1 2022 financial results keep rolling out and also the continuous crash in the US equities market will as well spur bullish sentiment on the Local bourse,” analysts at Cowry Asset Management stated.
However, Academy Press, Ikeja Hotel, Guinness Nigeria and Tripple Gee and Company topped the losers’ table declining by 13.71 per cent, 10.94 per cent, 10.91 per cent and 9.38 per cent to close at N1.51, N1.14, N98 and 0.87k respectively.
Comments are closed.