Stock Market Gains N1.85tn as Investors as Position for 2023FY Earnings Releases

Kayode Tokede

The stock market of the Nigerian Exchange (NGX) gained N1.85trillion week-on-week (WoW) to extend its positive run for a second week as investors continued to take position ahead of 2023 corporate earnings. 

The market capitalisation closed trading at N45.442trillion, gaining N1.85trillion from N43.594trilliion it opened for trading.

Last week Tuesday, the market capitalisation gained N1.6trillion on the backdrop of investors’ demand for large-mid stocks surge banking index, among others on the bourse.

Although, investor profit-taking activities briefly tempered the upbeat trend midweek, strong rallies in the NGX Consumer Goods, NGX Banking and NGX Industrial Goods indices propelled the market’s pricing gauge to a historic high, with the All-Share Index remaining above the 80,000-points mark breached during week, closing at 83,042.96 basis points.

Notably, increased investors’ interest in BUA Foods that gained 15.5per cent, Dangote Cement rose by 7.7per cent, and Guaranty Trust Holding Company Plc (GTCO) appreciated by 8.9per cent, resulted in a 4.2per cent Week-on-Week (WoW) gain in the All-Share Index and elevated the Year-to-Date gain to +11.1per cent.

All other indices finished higher with the exception of NGX Oil and Gas which depreciated by 1.61per cent, while the NGX ASeM index closed flat.

The weekly market report by NGX revealed that a total turnover of 5.719 billion shares worth N88.828 billion in 80,064 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.320 billion shares valued at N41.755 billion that exchanged hands in prior’s week 46,994 deals.

According to the report, “The Financial Services Industry (measured by volume) led the activity chart with 3.873 billion shares valued at N53.364 billion traded in 39,913 deals; thus contributing 67.72per cent and 60.08per cent to the total equity turnover volume and value respectively.

“The Conglomerates Industry followed with 725.490 million shares worth N9.886 billion in 7,658 deals. The third place was the Oil and Gas Industry, with a turnover of 223.240 million shares worth N2.690 billion in 4,464 deals.

“Trading in the top three equities namely Transnational Corporation Plc, FCMB Group Plc and Fidelity Bank Plc (measured by volume) accounted for 1.380 billion shares worth N17.741 billion in 12,442 deals, contributing 24.12per cent and 19.97 per cent to the total equity turnover volume and value respectively.”

Analysts Cordros Research said, “In the short term, we expect market performance to be dominated by the bulls, as positioning for 2023FY earnings releases and accompanying dividends declarations should outweigh profit-taking activities.

“Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.”