Market Cap Adds N213bn As Investors Buy GTCO, Others

Kayode Tokede

The market capitalisation or cap of the Nigerian Exchange Limited (NGX) added N213billion on its Week-on-Week (WoW) performance as dominance of the bulls ensured the bourse closed last week in a green territory.

The market capitalisation gained N213billion to close for trading last week at N27.074trillion from N26.861trillion it opened for trading as the NGX All-Share Index advanced by 0.8per cent WoW to close at 49,706.09 basis points from 49,316.29 basis points the stock market opened for trading.

Notably, investors bargain hunting in Guaranty Trust Holding Company that gained 7.4 per cent, Stanbic IBTC Holdings that added 8.6per cent, FBN Holdings that appreciated by 8.3per cent and BUA Foods that rose by 2.5per cent spurred the stock market positive outturn for last week trading activities.

Based on the preceding, the Month-till-Date (MtD) and Year-till-Date (YtD) gains rose to 4.3per cent and +16.4per cent, respectively.

Sectoral performance was broadly positive following gains in the Banking Index added 1.97per cent, Consumer Goods Index rose by 0.98 per cent and Oil & Gas Index appreciated by 0.91per cent.

On the other hand, the Industrial Goods index closed flat at 2,399.97 basis points. 

The weekly market report of the NGX stated that a total turnover of 860.933 million shares worth N16.134 billion in 14,502 deals was traded last week by investors, in contrast to a total of 814.089 million shares valued at N12.204 billion that exchanged hands in prior’s week in 15,488 deals.

According to the report, “the financial services industry (measured by volume) led the activity chart with 360.234 million shares valued at N3.772 billion traded in 6,905 deals; thus contributing 41.84per cent and 23.38per cent to the total equity turnover volume and value respectively.

“The Construction/Real Estate Industry followed with 302.200 million shares worth N927.033 million in 261 deals. The third place was the Consumer Goods Industry, with a turnover of 39.078 million shares worth N1.685 billion in 2,593 deals.

“Trading in the top three equities namely UPDC Real Estate Investment Trust, FBN Holdings Plc and Guaranty Trust Holding Company Plc (measured by volume) accounted for 440.239 million shares worth N3.015 billion in 2,038 deals, contributing 51.13per cent and 18.69 per cent to the total equity turnover volume and value respectively.”

According to analysts at Cordros Research, “As the year draws to an end, we expect yield-seeking investors to take positions in stocks with attractive dividend yields ahead of the 2022 financial year dividend declarations.

“However, we advise investors to take positions in only fundamentally sound stocks as the fragility of the macroeconomic environment remains a significant headwind for corporate earnings.”