The domestic equities market closed the week on a positive note as investors positioned in dividend-paying stocks on the Nigerian Exchange Limited (NGX).
Notably, the NGX All-Share Index rose by 3.71 percent week-on-week (W-O-W) to close at 105,085.25 basis points. Similarly, the market capitalisation of listed equities expanded by N2.12 trillion to close at N59.416 trillion.
The sectoral performance for the week displayed upbeat performance across most sectors, except the NGX Oil & Gas index, which recorded a modest loss of 0.11 percent week on week. Conversely, the NGX Banking, Insurance, Consumer Goods, and Industrial sectors experienced positive outings, gaining 12.84 percent, 2.52 percent, 1.41 percent, and 0.20 percent week on week, respectively.
Market breadth for the week was positive as 55 equities appreciated, 24 equities depreciated, while 75 equities remained unchanged. Julius Berger led the gainers table by 30.58 percent to close at N72.60 per share. Omatek Ventures followed with a gain of 23.08 percent to close at 80 kobo, while MTN Nigeria Communications (MTNN) went up by 20.96 percent to close to N267.80 per share.
On the other side, International Energy Insurance led the decliners table by 27.38 percent to close at N1.22, per share. SUNU Assurance followed with a loss of 19.11 percent to close at N1.27, while Lasaco Assurance declined by 14.53 percent to close at N2.00 per share.
Overall, a total turnover of 1.773 billion shares worth N52.867 billion in 44,713 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.157 billion shares valued at N108.824 billion that exchanged hands prior week in 51,556 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.136 billion shares valued at N23.185 billion traded in 19,896 deals; contributing 64.04 percent and 43.86 percent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 339.390 million shares worth N5.874 billion in 3,650 deals, while the Consumer Goods Industry traded a turnover of 82.645 million shares worth N6.724 billion in 6,155 deals.
Trading in the top three equities; Transnational Corporation (Transcorp), Guaranty Trust Holding Company (GTCO), and Access Holdings (measured by volume) accounted for 677.439 million shares worth N17.287 billion in 7,789 deals, contributing 38.21 percent and 32.70 percent to the total equity turnover volume and value respectively.
Financial analysts predicted a sustained bullish trend in the Nigerian stock market as more companies release dividend announcements.
The local equities market experienced another positive week on the back of bargain hunting just as dividend income investors continue to position in anticipation of more corporate earnings without losing sight of the February Consumer Price Index (CPI) report which printed at 31.70 percent even as they digest the outcome of the recent Nigerian Treasury Bills auction where there were slight declines in the stop rates.
This surge in the market was propelled by renewed bullish sentiment in financial stocks on the back of expected corporate releases. Consequently, investors enjoyed a substantial year-to-date return of 40.54 percent as of March 15, 2024. This performance underscores the dynamic interplay of market forces amid evolving economic conditions.
Looking ahead, analysts at Cowry Assets Management Limited anticipated “the prevailing bullish sentiment to persist in the market during the coming week. This expectation is based on the anticipation by market players that more corporate releases with dividend announcements will hit the market even as players digest the recently published consumer price inflation report as well as the outcome of the recent Treasury bills auction where we saw rates decline.
“Thus, it is expected that investors will take advantage of low valuations and the rebalancing of portfolios. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.”
Afrinvest Limited said, “This week, we expect the bourse to sustain the bullish momentum barring any shock.”
Comments are closed.