Investors in Nigerian stocks closed the weekend with net gains of 598 billion naira despite the start of considerable profit taking.
Investors sought to monetize the substantial capital gains accumulated over successive rally weeks, but gains in large-cap telecom stocks rallied the overall market position to a positive close.
Benchmarks at Nigerian Exchange (NGX) over the weekend showed an average return of 2.09%, equating to net capital gains of N598 billion. The rally pushed the average yield since the start of the year to 26.61%.
The All Share Index (ASI) – the common value-based index that tracks the share prices of all NGX-listed stocks, closed the weekend at 54,085.30 points against the index. opening of its week of 52,979.96 points. The aggregate market value of all listed shares rose accordingly from the week’s opening value of 28.562 trillion naira to close at 29.160 trillion naira.
With more than two declines for each advance, the overall positive market position was mainly driven by gains recorded by Airtel Africa, the only large-cap stock among the top 10 gainers. Driven by renewed appetite from foreign investors, Airtel Africa’s share price rose 20.2% to close at N1.767 per share, the third highest gain of the week and highest in all large cap stocks.
Underlying sentiment was generally negative with 54 losers versus 23 winners during the week, compared to 37 winners and 42 losers recorded the previous week.
As expected, sector indices closed negative. Telecom stocks are not represented by any sector index, but they have a substantial influence on the overall market benchmark, the ASI. The NGX Insurance Index posted an above-average loss of 6.27%. The NGX consumer goods index followed with a decline of 3.94%. The NGX oil and gas index fell 0.86%.
The NGX banking index fell 0.76%. The NGX Industrial Goods Index fell 0.67%. The NGX 30 index, which tracks the 30 largest stocks in the stock market, fell 2.28%. The NGX Pension Index, which tracks specially selected stocks in line with pension fund investment guidelines, posted a negative return of -2.74%, while the NGX Lotus Islamic Index, which tracks ethical stocks consistent with Islamic principles, also posted a negative return. return of -2.23%.
On the upside, Industrial and Medical Gases Nigeria led with a gain of 20.88% to close at N11 per share. MRS Oil Nigeria followed with a gain of 20.59% to close at N16.40 per share. Conoil rose 9.95% to close at 34.25 naira while FTN Cocoa Processors rose 9.37% to close at 35 kobo per share.
In contrast, Nigeria’s UAC led the losers with a decline of 27.08% to close at N10.50. Global Spectrum Energy Services followed with a loss of 18.77% to close at N2.77. Royal Exchange fell 14.04% to close at 98 kobo. RT Briscoe fell 13.85% to close at 56 kobo while Jaiz Bank fell 13.33% to close at 78 kobo per share. Jaiz Bank’s share price was adjusted during the week to reflect the dividend payment.
Business momentum also slowed with total turnover of 1.84 billion shares worth N27.29 billion in 27,273 trades last week from a total of N3.02 billion. shares worth N31.78 billion traded in 29,153 deals two weeks ago.
The financial services sector remained at the top of the business chart with turnover of 1.29 billion shares valued at N10.75 billion in 12,379 transactions, accounting for 69.90% and 39.37% respectively. % of volume and value of total stock turnover. The conglomerate sector followed with 251.105 million shares worth N1.66 billion in 1,371 deals, while the consumer goods sector ranked third with turnover of 105, 60 million shares worth N2.52 billion in 4,263 transactions.
Bank stocks dominated the activity chart. The trio of Ecobank Transnational Incorporation, Jaiz Bank and Access Holdings were the most active stocks, accounting for 640.650 million shares worth 4.825 billion naira in 2,098 trades, representing 34.81% and 17.68 respectively % of volume and value of total stock turnover.
“The market continues to go against the general sentiment and closed the week on a positive note. The negative market sentiment is fading. A positive close in the next trading session could signal the start of a bullish trend. A negative close may signal a possible retracement,” analysts at Arthur Stevens Asset Management said over the weekend.
Also Read: Nigerian Stock Market Starts Week on a Negative Note, Despite GDP Growth
Cordros Capital analysts have noted that with the recent decision by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to raise the monetary policy rate (MPR) by 150 basis points to 13.00%, negative sentiments will dominate the market. short-term performance.
“Nevertheless, we believe that a short-term market correction will provide investors with opportunities to get back into equities with strong fundamentals and attractive dividend yields. Overall, we advise investors to only take positions on equities fundamentally justified, as the fragility of the macroeconomic environment remains a significant headwind to corporate earnings,” Cordros Capital said.
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