Banking stock pushes equities market as investors earn N88.98bn WoW

The Nigerian Stock market sustained its recovery as the Nigerian Exchange Group (NGX) closed the week bullish with 1.3 per cent.

Bargain hunting in banking stocks was the determinant factor during the week as investors flocked into banking names ahead of the release of first-quarter results.

Consequently, the All-Share Index advanced by 1.3 per cent Week-on-Week (WoW) to close at 39,301.82 basis points.
Market Capitalisation closes at N trillion as investors on the local bourse earn N88.980 billion respectively. As a result, the Year-to-Date (YTD) loss moderated to -2.4 per cent

Notably, bargain hunting in large-cap stocks; such as WAPCO, Stanbic IBTC, United Bank for Africa, Guaranty Trust Bank and Zenith Bank drove the weekly gain as their stocks appreciated by 8.8 per cent, 8.7 per cent, 7.9 per cent, 7.0 per cent and 3.7 per cent, respectively.

Sectoral performance was broadly positive as all sectors recorded gains. The Banking index led the gainers chart with a 4.8 per cent increase, followed by Consumer Goods, Industrial Goods, Insurance and, Oil and Gas indices.

Activity levels were stronger than the prior week, as trading volumes and value rose significantly by 26.2 per cent and 290.6 per cent, respectively.

A total turnover of 1.602 billion shares worth N42.142 billion in 19,507 deals were traded this week by investors on the floor of the Exchange, in contrast to a total of 1.263 billion shares valued at N10.759 billion that exchanged hands last week in 19,975 deals.

The Financial Services Industry, measured by volume, led the activity chart with 1.029 billion shares valued at N9.188 billion traded in 11,095 deals; thus contributing 64.22 per cent and 21.80 per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 215.482 million shares worth N29.855 billion in 566 deals. The third place was Conglomerates Industry, with a turnover of 118.458 million shares worth N675.954 million in 1,088 deals.

In the week ahead, analysts expect NGX floor to be flooded with results as the Q1-2021 earnings season commences in full swing.

Cordros believed investors would be looking for clues on how corporate earnings will evolve in 2021, given the expected improvement in macroeconomic conditions. The local bourse is likely to close positive next week as we expect decent earnings releases across the board to temper selling activities stoked by the rising yields in the FI market.

They however advised investors to take positions in only fundamentally justified stocks as the weak macro story remains a significant headwind for corporate earnings.

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