The Bulls Return To The NGX With N168bn Profit After 2 Weeks of Bearish Run…

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After 2 consecutive weeks of lacklustre performance, the equities market was upbeat as the benchmark Index inched upward by a marginal 0.63% w/w driven by persistent bargain hunting
activities in some of the fundamentally
attractive stocks in reaction to the upbeat performance of Nigeriais economic
output.

As a result, the NGX market capitalisation cleared higher by 0.63% w/w to N26.8 trillion from N26.63 trillion in the prior week to give investors N168.02 billion in profits 3 out of 5
sessions while the market YTD return rose to 16.31%.

The positive performance in the just concluded week was buoyed by price appreciations in NEM (+31%), JAPAULGOLD (+17%), HONYFLOUR (+12%), STANBIC (+9%), and AIRTELAFRI (+7%).

Across the sectorial front, it was a tepid performance as four out of five indexes under our purview lost safe the Insurance Index which saw overwhelming appreciation.

Resultantly, the NGX Insurance (3.88%) was the lone gainer of the week due to gains in NEM and MBENEFITs.

On the other hand, the NGX Industrial Goods (-0.87%) led the laggards and closed the week negative while the NGX Consumer Goods (-1.73%), NGX Banking (-0.69%) and NGX Oil and Gas (-4.08%) Indexes recorded weekly losses from sell-offs.

Meanwhile, the level of trading activities in the week was upbeat as the total traded volume advanced 15.32% w/w to 914.44 million units while the total weekly traded value rose by 1.75% w/w to N12.08 billion and then the total deals for the week inched (6.88%) to 18,021 from 16,861 last week.

Going into the new week, earnings releases expectations from the banking heavyweights is expected to buoy trading activities as investors continue their bargain hunting activities in the market.

Thus, we expect the market to trade in like manner as this week. However, we continue to advise investors to trade on companies’ stocks with sound fundamentals and a positive outlook.