Sophia Johnson
Mon, Aug 7, 2023 7:45 AM

Positive Finish for Nigerian Equities Market

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Positive Finish for Nigerian Equities Market
The Nigerian equities market ended the week with a positive performance, as the NGX-ASI gained 0.2 percent. Market capitalization and year-to-date return also saw favorable growth. Despite a decline in trading volume and value, certain sectors experienced price appreciations, while others faced sell pressures. Analysts forecast a sustained positive outing in the coming week, buoyed by improved investor sentiment and anticipated earnings from tier-1 banks. However, the weak macroeconomic landscape and fixed-income market movements continue to pose challenges for corporate earnings.

The Nigerian equities market concluded the trading week with a positive performance, delivering a gain of 0.2 percent as the NGX-ASI closed at 65,198.08 points. This translated to an increase in market capitalization by N77.1 billion, reaching a total of N35.5 trillion. Furthermore, the year-to-date return witnessed growth, reaching 27.2 percent from the previous 26.9 percent.

While the overall market performance was positive, the activity level worsened as both average volume and value traded declined. The average trading volume dropped by 9.8 percent to 514.9 million units, while the average trading value declined by 21.3 percent to N5.9 billion on a week-on-week basis.

Leading the pack in terms of trading volume were AIICO with 335.0 million units, FCMB with 126.5 million units, and UBA with 117.7 million units. In terms of trading value, MTNN took the lead with ₦2.4 billion, followed by ZENITH with ₦1.9 billion, and GTCO with ₦1.8 billion.

Across various coverage sectors, performance was positively skewed, with four indices gaining and two indices losing. The Insurance and Consumer Goods indices were the leading gainers, advancing by 5.9 percent and 2.3 percent, respectively. This growth was driven by buying interest in MANSARD insurance, CUSTODIAN, DANGSUGAR, and NB.

The AFR-ICT and Industrial Goods indices also experienced gains, rising by 1.0 percent and 0.2 percent, respectively. The price appreciation of MTNN, BETA-GLASS, and BERGER contributed to the growth in these indices.

On the other side of the spectrum, the Banking and Oil & Gas indices faced declines of 2.1 percent and 0.7 percent, respectively. This was a result of sell pressure on ETI, FIDELITY, and ETERNA.

Investor sentiment, as determined by market breadth, improved to -0.1x from the previous week's -0.3x. Out of the listed stocks, 42 gained, 50 lost, and 61 remained unchanged.

The top gainers of the week were SUNUASSURE, CHELLARAM, and ABBEYBDS, while JONHHOLT, OMATEK, and SOVERNIN were the top laggards.

Analysts at Afrinvest anticipated a sustained positive outing in the bourse for the next week, driven by improved investor sentiment.

Cordros analysts, on the other hand, expressed their belief that the earnings of tier-1 banks in the coming weeks would support positive sentiments. They also highlighted the anticipation of interim dividends as a contributing factor.

Looking ahead in the medium term, investor sentiments are expected to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.

Overall, analysts reiterated the need to position oneself in fundamentally sound stocks, noting the weak macro environment as a significant headwind for corporate earnings.

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

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