NGX-ASI Rise 2.95% w/w to 14-Year High; Buoyed by Dividends and Year-end Scorecards…


Read audio

The benchmark index extended its bull transition to break another strong psychological resistance of 53,000 for the first time since May 2022 and a 14-year high since July 2008 above the 54,000 mark with upbeat sentiment, which drove the accumulation of major tickers following the positive releases of 2022 scorecards by listed companies.

The upbeat market and increasing flow of funds into the equity space, as revealed by the money flow index and buying pressure at this moment, show the importance of price, value, and timing in stock investing or trading.

Furthermore, dividend announcements from high-priced stocks provided market participants with insight into the expectations for this earnings season, despite rising volatility and the likelihood of profit-taking at any time given the year’s uptrend.

Through the week, market activity was upbeat in all sessions this week on the back of impressive earnings so far.

Thus, the benchmark index rose 2.95% week on week to 54,213.09 points, while the market cap increased from N847 billion to N28.68 trillion.

Also, the ASI’s year-to-date return was 5.78% owing to increased buy-power and momentum across some of the large and mid-cap names.

Across the sectors this week, sentiment was largely positive for most of the indices, except for the Consumer Goods index, which lost 0.42% week on week.

On the other hand, price appreciation from buying momentum was witnessed in the banking index, which gained by 2.49% week on week, alongside the oil and gas index, which rose the most this week by 9.16% due to impressive earnings from MRS.

Also, the insurance and industrial goods indexes rose by 0.27% and 0.13%, respectively.

Meanwhile, the top gaining securities for the week were GEREGU (+37%), MRS (+21%), and SEPLAT (+20%), while the week’s losers were CHAMS (- 17%), GUINNESS (-10%), and ARDOVA (-8%)

The level of trading activity in the equity market continued with strong momentum for another week, with the total deals for the week inching northward by 11.43% week on week to 20,333 as stockbrokers recorded a massive 400.7% surge in trade volumes to 3.79 billion and valued at N21.62 billion, indicating an increase of 119.32% week on week.

Looking ahead into the new week, we expect the current trend of positive sentiment to sustain its grip on the market on the back of more audited earnings expectations and election uncertainty.

However, we advise investors to trade companies with sound fundamentals and, as such, should take advantage of price corrections in line with domestic and global trends.

Godwin Okafor
Godwin Okafor
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

Share post:




More like this

EFCC under Bawa has become a cesspool of internal corruption

*158 Anti-Corruption CSOs, activists tells Buhari: *Rule of law: National...

Air Peace plans nonstop flights to Isreal in April

JERUSALEM, March 26 - Israel's transport minister on Sunday...

Saka Shines As England Daze Ukraine

  Bukayo Saka scored one and assisted the other for...

Several Rendered Homeless as rainstorm wreaks Havoc in Kogi.

March 26, 2023. Azonuchechi Chukwu. A rainstorm has rendered residents of...