Last week, the equities market rebounded, driven by strong half-year 2024, H1’24, results from Zenith Bank Plc and GTBank Plc, which boosted the performance of the Banking Index.
As a result, bargain hunting in the shares of companies like MTN, First Bank of Nigeria Holding, Oando, and Nestle, among others, helped lift the market. The Nigerian Exchange, NGX, All Share Index (ASI) rose by 1.1%, closing at 97,456.62 points compared to 96,433.53 points the previous week.
Similarly, the market capitalisation, which reflects the total value of investments on the Exchange, increased by over N607 billion, closing at N56.001 trillion, up from N55.394 trillion the previous week.
Meanwhile, Month-to-Date and Year-to-Date returns stood at -0.3% and 30.3%, respectively.
Trading activity showed mixed results, with a 20.2% Week-on-Week (W/W) increase in trading volume, while the value of trades dipped slightly by 0.5%. Sectoral performance was positive, with the Banking Index up 5.1%, the Oil and Gas Index rising by 2.0%, the Insurance Index by 1.6%, the Consumer Goods Index by 1.5%, and the Industrial Goods Index by 0.2%.
Analysts at Cordros Research commented on the market outlook, stating: “We expect mixed sentiments in the near term, with investors focusing on bank stocks following recent corporate actions.”
‘‘However, we acknowledge the possibility of profit-taking activities on stocks that have experienced notable appreciation in recent weeks.
‘‘In the medium term, we expect investors’ sentiments to be shaped by developments in the macroeconomic landscape and the movement of yields in the fixed-income market.”
Also on market outlook, analysts at InvestData Consulting Limited said: “We expect mixed sentiment to continue on profit taking and bargain hunting in the hope of an inflow of the half-year numbers from the other interim dividend paying stocks, as sector rotation continues in the market. Portfolio repositioning is however continuing, with investors taking advantage of pullbacks to buy into value.
‘‘This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”
Recall that the domestic stock market, on Thursday rebounded with a N178 billion gain, driven by advances in Tier-one banks and several large and mid-cap stocks.
Renewed investor interest in Guaranty Trust Holding Company, GTCO, FBN Holdings, Access Corporation, Nestlé, Transnational Corporation, and Oando Plc contributed to the market’s upward movement.
(Vanguard)
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