Market Cap Up N458.55bn WoW on Investors’ Renewed Interest 

Kayode Tokede

The Nigerian stock market reversed its bearish performance as investors renewed interest in BUA Foods Plc, Dangote Sugar Refinery Plc, and Transnational Corporation Plc that trigged market capitalisation growth of N458.55billion Week-on-Week (WoW).

With the likes of BUA Foods adding 7.9 per cent to N per share, Dangote Cement appreciating by 35.7 per cent to and Transcorp gaining 39.4 per cent to N per share, the market capitalisation advanced too N35.881trillion last week from N35.422trillion it opened for trading.

The Nigerian Exchange Limited All-Share index rose by 1.29per cent WoW to close at 65,558.91 basis points from 64,721.09 basis points it closed for trading last week.

As a result, the stock market Month-to-Date and Year-to-Date gains increased to 1.90per cent and 27.92 per cent, respectively.

From a sectoral performance, the NGX Consumer Goods rose by 11.6per cent and NGX Insurance gained 1.2per cent, while the NGX Banking dropped by 3.6per cent, and NGX Oil and Gas declined by 2.4 per cent.

The Industrial Goods index closed flat.

The market last week recorded a total turnover of 1.812 billion shares worth N29.299 billion in 31,163 deals, in contrast to a total of 1.689 billion shares valued at N29.407 billion that exchanged hands in 29,477 deals prior deals.

According to the Exchange, the financial services industry (measured by volume) led the activity chart with 936.685 million shares valued at N10.116 billion traded in 12,886 deals; thus contributing 51.68per cent and 34.53per cent to the total equity turnover volume and value respectively.

“The Financial Services Industry (measured by volume) led the activity chart with 936.685 million shares valued at N10.116 billion traded in 12,886 deals; thus contributing 51.68per cent and 34.53 per cent to the total equity turnover volume and value respectively.

“The Conglomerates sector followed with 461.589 million shares worth N2.333 billion in 3,451 deals. The third place was the Consumer Goods Industry, with a turnover of 127.310 million shares worth N5.003 billion in 5,792 deals,” the report stated.

Trading in the top three equities namely Transnational Corporation Plc, Fidelity Bank Plc and Access Holdings Plc (measured by volume) accounted for 693.533 million shares worth N5.030 billion in 5,450 deals, contributing 38.26per cent and 17.17per cent to the total equity turnover volume and value respectively.

According to analysts at Cordros Research, “Looking ahead, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.

“Overall, we reiterate the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”