Market Cap Adds N703bn Amid Investors’ Positive Sentiment

Positive sentiments returned to the stock market of the Nigerian Exchange Limited (NGX) as investors renewed interest in listed fundamental stocks.

The positive sentiment lifted the stock market capitalisation by N703billion, closing last week at N28,602trillion from N27.899trillion the market opened for trading.

Accordingly, the NGX All-Share Index advanced by 2.52per cent week-on-week (w/w) to close at 52,512.48 basis points from 51,222.34 basis points.

The stock market gain is on the backdrop of investors’ bargain-hunting activities in MTN Nigeria rose by 6.9per cent, Dangote Cement added 3.1per cent and BUA Cement added 3.6per cent.

Consequently, the Year—till-Date (YtD) return increased to +2.5per cent.

According to the Exchange, a total turnover of 1.286 billion shares worth N29.634 billion in 19,816 deals were traded last week by investors on the floor of the Exchange.

The Exchange in its report said, “The Financial Services Industry (measured by volume) led the activity chart with 952.237 million shares valued at N9.728 billion traded in 9,647 deals; thus contributing 74.07 per cent and 32.83 per cent to the total equity turnover volume and value respectively.

“The Industrial Goods Industry followed with 92.864 million shares worth N8.510 billion in 1,682 deals. The third place was the Conglomerates Industry, with a turnover of 54.568 million shares worth N96.654 million in 754 deals.

“Trading in the top three equities namely FBN Holdings Plc, Sterling Bank Plc, and Guaranty Trust Holding Company Plc (measured by volume) accounted for 507.852 million shares worth N5.707 billion in 2,585 deals, contributing 39.50per cent and 19.26 per cent to the total equity turnover volume and value respectively.

Analysts at Cordros research explained that, “In the short term, we expect market performance to be dominated by the bulls, as positioning for 2022FY earnings releases and accompanying dividends declarations should outweigh profit-taking activities.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”