Bulls Sustain Dominance Ahead Year-End Seasonality, Window Dressing….


The local bourse sustained its weekly bull dominance ahead of the festive holidays just as we saw the persistence of bargain hunting activities among investors and traders who are looking to take position in value stocks at their current prices.

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Regardless of the profit-taking activities by speculators, the bourse’s bull trend stays strong and is expected to be sustained the recovery mode heading into another trading year.

At the close of the week, the benchmark
index trended northward by 0.79% week
on week in the face of strong momentum and buying sentiment from players ahead of the year-end window dressing by traders and investors who
want to close the year higher than was
earned at the end of the year coupled
with the changing yield environment in
the fixed income space as was seen from
the recent Nigerian Treasury Bills PMA where the rates and yield suffered decline across tenor gauges.

Also, the market capitalization of listed equities rose 0.79% week on week to N27.07 trillion for the first time since August 10, 2022 as investors booked profit worth N212.3 billion in 5 days while the market year to date return inched further to 16.36%.

Consequently, the bull dominance buoyed by positive sentiment from equity investors prompted gains from price appreciation in tickers such as CHAMPION (+15%), ARDOVA (+13%), JBERGER (+10%), FIDELITYBK (+9%) and STANBIC (+9%) respectively.

Across the sectorial front, the performance was largely bullish in the week with all sectors under our watchlist closing northward and was spearheaded by the Banking Index which gained 1.97% week on week.

Similarly, the Consumer Goods sector performed positively by 0.98, and was followed by NGX Oil & Gas, NGX Insurance and NGX Industrial Goods Indices which closed the week by +0.91%, +0.32% and +0.04% in that order from the prior week.

Meanwhile, the level of trading activities in the week came in strong as the total traded volume and value reversed last week’s declines by 5.75% and 1.02% week on week to 860.93 million units valued at N9.79 billion.

However, the total deals traded for the week plummeted by 6.37% week on week to 14,502 trades for the week.

Looking ahead, the current trend is expected to continue on profit-taking and bargain hunting activities ahead of the holidays as the market pullbacks add more strength to the upside potential of the index.

However, we continue to advise investors to trade on companies’ stocks with sound fundamentals.

Godwin Okafor, The Naija247news
Godwin Okafor, The Naija247newshttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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