Stock Exchange Gains N1.85 trn As Investors Position For Corporate Earnings
The stock exchange of the Nigerian Exchange (NGX) got N1.85 trillion week-on-week (WoW) to extend its favorable run for a 2nd week as financiers continued to take position ahead of 2023 business profits.
The marketplace capitalisation closed trading at N45.442 trillion, getting N1.85 trillion from N43.594 trilliion it opened for trading.
Recently Tuesday, the marketplace capitalisation acquired N1.6 trillion on the background of financiers’ need for large-mid stocks rise banking index, to name a few on the bourse.
Financier profit-taking activities quickly tempered the positive pattern midweek, strong rallies in the NGX Consumer Goods, NGX Banking and NGX Industrial Goods indices moved the market’s rates gauge to a historical high, with the All-Share Index staying above the 80,000-points mark breached throughout week, closing at 83,042.96 basis points.
Significantly, increased financiers’ interest in BUA Foods that acquired 15.5 percent, Dangote Cement increased by 7.7 percent, and Guaranty Trust Holding Company Plc (GTCO) valued by 8.9 percent, led to a 4.2 percent Week-on-Week (WoW) gain in the All-Share Index and raised the Year-to-Date gain to +11.1 percent.
All other indices ended up greater with the exception of NGX Oil and Gas which diminished by 1.61 percent, while the NGX ASeM index closed flat.
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The weekly market report by NGX exposed that an overall turnover of 5.719 billion shares worth N88.828 billion in 80,064 offers was traded last week by financiers on the flooring of the Exchange, in contrast to an overall of 3.320 billion shares valued at N41.755 billion that exchanged hands in previous’s week 46,994 offers.
According to the report, “The Financial Services Industry (determined by volume) led the activity chart with 3.873 billion shares valued at N53.364 billion sold 39,913 offers; hence contributing 67.72 percent and 60.08 percent to the overall equity turnover volume and worth respectively.
“The Conglomerates Industry followed with 725.490 million shares worth N9.886 billion in 7,658 offers. The 3rd location was the Oil and Gas Industry, with a turnover of 223.240 million shares worth N2.690 billion in 4,464 offers.
“Trading in the leading 3 equities specifically Transnational Corporation Plc, FCMB Group Plc and Fidelity Bank Plc (determined by volume) represented 1.380 billion shares worth N17.741 billion in 12,442 offers, contributing 24.12 percent and 19.97 percent to the overall equity turnover volume and worth respectively.”
Experts Cordros Research stated, “In the short-term, we anticipate market efficiency to be controlled by the bulls, as placing for 2023FY profits releases and accompanying dividends statements need to surpass profit-taking activities.
“Notwithstanding, we encourage financiers to take positions in just basically warranted stocks as the weak macro environment stays a substantial headwind for business profits.”