Emma Johnson
Mon, Aug 7, 2023 2:50 PM

Nigerian Exchange Stocks Market Capitalization Rises by N77 Billion

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Nigerian Exchange Stocks Market Capitalization Rises by N77 Billion
The Nigerian Exchange (NGX) stocks market capitalization increased by more than N77 billion week on week, reaching N35.5 trillion amid persistent bargain hunting in the local exchange. Despite a bearish trend in market activity, the Nigerian Exchange All-Share Index (NGXASI) rose 0.2% to settle at 65,198.08 points. The article explores the factors contributing to this growth, the top traded stocks, sectoral performance, and market sentiments.

Amidst persistent bargain hunting activities, the Nigerian Exchange (NGX) saw its stock market capitalization increase by over N77 billion in a week. This surge saw the total market capitalization reach N35.5 trillion, indicating a positive sentiment from investors.

The Nigerian Exchange All-Share Index (NGXASI) also experienced a 0.2% rise, settling at 65,198.08 points. This growth contributed to the year-to-date return, which increased from 26.9% to 27.2%.

Despite the overall positive trends, this week's market activity favored the bearish side. The volume of shares traded reduced by 9.80%, while the value of shares declined by 21.33%. Stockbrokers reported a deterioration in market activity, with average trade volume and value falling to 514.9 million units and 5.9 billion Naira, respectively. In the previous week, 2.86 billion units were traded at a value of N37.65 billion.

Analysts note that a few stocks dominated the top traded stocks by volume, with AIICO (335.0 million units), FCMB (126.5 million units), and UBA (117.7 million units) leading the way. In terms of value, MTNN (₦2.4 billion), ZENITH (₦1.9 billion), and GTCO (₦1.8 billion) took the top positions.

Reflecting the volatility of the market, certain stocks experienced significant gains and losses. The top gainers for the week were SUNUASSURE (+55.0%), CHELLARAM (+45.5%), and ABBEYBDS (+32.7%). Conversely, JONHHOLT (-33.2%), OMATEK (-30.6%), and SOVERNIN (-28.6%) led the laggards.

Several stocks displayed impressive gains, attracting investor attention. DANGSUGAR (+25%), GLAXOSMITH (+20%), and LINKASSURE (+20%) showed remarkable growth. Similarly, MTNN (+1.8%), BETAGLASS (+10.0%), and BERGER (+9.5%) exhibited positive momentum.

Noteworthy buying interest was observed in MANSARD (+17.1%), CUSTODIAN (+9.1%), DANGSUGAR (+25.0%), and NB (+16.4%). Conversely, ETI (-7.9%) and FIDELITY (-6.5%) faced sell pressure.

Market analysts highlighted the impact of surprising company results on price movements, as well as market expectations. Furthermore, given the recent rate hike making fixed income instruments attractive, cautious investors are considering potential inflation hedging strategies within the equity space. This exploration adds another layer of complexity to market dynamics.

Examining sectoral performance, the insurance sector emerged as the top gainer, recording a remarkable 5.88% increase. The consumer goods and industrial goods sectors also displayed strength, gaining 2.27% and 0.23% respectively. These gains were primarily driven by favorable sentiment towards mid and high-cap stocks.

In contrast, the banking and oil & gas sectors faced challenges, declining by 2.13% and 0.68% respectively. The rate hike and rising fixed income yields prompted cautious evaluations from investors regarding their impact on these sectors.

Overall, the equities market capitalization witnessed a modest 0.22% increase week-on-week, growing from N35.40 trillion to N35.48 trillion. Despite the bearish market sentiments, the positive sentiment from bargain hunting and sectoral gains contributed to this growth.

Source of content: OOO News 2023-08-07 News

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