Santa Rally: NGX market cap adds N464bn in a week

LAST week, equities trading at the Nigerian Exchange Limited (NGX) was impressive as equity investors capitalised on gains totaling N464 billion over four out of the five trading sessions, setting the stage for the anticipated “Santa Claus rally” as market participants gear up for the festive season.

In tandem with the impressive index performance, the market capitalisation exhibited a northward trajectory, recording a 1.18 percent week-on-week (WoW) increase to reach N39.61 trillion.

The NGX-All Share Index (ASI) concluded the trading week increase with a commendable 1.18 percent, marking a notable display of resilience in the face of comparatively low traded volumes and a rather stagnant market breadth.

The positive momentum propelled the All-Share Index above the psychologically significant 72,000 mark, culminating in a closing figure of 72,389.23 points.

This bulls was underpinned by robust rallies observed across key sectors, namely banking, consumer goods, telecoms, energy, and industrials.The bullish trajectory was observed amid a nuanced market sentiment, where certain stocks marked new 52-week highs, coinciding with the prevailing discourse around anticipated recapitalisation within the banking sector and the broader economic headwinds.

Noteworthy advancements were witnessed in the Banking, Consumer Goods, and Industrial indexes, registering appreciations of 7.01 percent, 0.22 percent, and 0.24 percent, respectively.

Highlighting specific equity movements, the top gaining stocks for the week included Infinity Trust Mortgage Bank, SCOA, Sterling Financial Holding Company, Cadbury and Access Holdings, each securing impressive gains of 59 percent, 29 percent, 10 percent, 10 percent and 10 percent0, respectively, compared to their previous week’s close.

Conversely, stocks such as Eterna, Thomas Wyatt, NEM Insurance and Mecure Industries faced declines in their share prices on a week-on-week basis by 12 percent, 11 percent, nine percent and eight percent, respectively.

Despite the market’s overall positive performance, trading activity during the week exhibited a degree of lethargy, marked by a 22.32 percent decrease in total traded volume, which settled at 1.88 billion units. The number of trades mirrored this sentiment, declining by 4.85 percent to 33,020 deals, while the weekly traded value experienced a notable downturn of 29.82 percent week-on-week, closing at N31.63 billion.

During the week under review, a total turnover of 1.882 billion shares worth N31.630 billion in 33,020 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.423 billion shares valued at N45.070 billion that exchanged hands last week in 34,704 deals.

The Financial Services Industry, measured by volume, led the activity chart with 1.373 billion shares valued at N22.165 billion traded in 17,300 deals; thus contributing 72.96 percent and 70.08 percent to the total equity turnover volume and value respectively.

The Services Industry followed with 97.008 million shares worth N616.265 million in 1,949 deals.

The third place was the Consumer Goods Industry, with a turnover of 86.370 million shares worth N2.136 billion in 3,819 deals.

Trading in the top three equities namely Access Holdings Plc, Guaranty Trust Holdings Company Plc and Zenith Bank Plc, measured by volume, accounted for 491.533 million shares worth N15.466 billion in 5,997 deals, contributing 26.12 percent and 48.90 percent to the total equity turnover volume and value respectively.Looking ahead, Cowry Research believed a continuation of positive sentiment and profit-taking, driven by bargain hunting for dividend-paying stocks.

“Market players are expected to digest the recently published Consumer Price Inflation (CPI) report and its potential impact on the financial market, amidst sector rotation and portfolio rebalancing spurred by the high expectation for full-year corporate numbers and high yields. Amidst all these, we maintain our advice to investors on taking positions in stocks with sound fundamentals and whose earnings yield and earnings per share support higher payout ratio,” Cowry research stated.Cordrod Capital in its weekly report posits that the market might remain mixed this week as investors cherry-pick counters given the absence of any significant positive catalysts. “Nevertheless, we reiterate the need for investors to seek positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” it said.

 

READ ALSO FROM NIGERIAN TRIBUNE 

• How I helped Peter Obi overcome impeachment plot as Anambra governor — Sowore

• Yuletides: Low-key Christmas looms as poultry birds price rise than last years’

• Comedian Mark Angel apologises over Emanuella’s viral dance video

• I learnt about the use of human head for money rituals on Facebook —Man who beheaded OAU student in Abeokuta

• Top 13 facts about Buhari at 81

• CAF crowns Nigeria’s Osimhen African Player of the Year