Equity trading on the NGX-ASI resume the month of March with bullish momentum after the upbeat in buying interests and churn out of full-year scorecards by corporates in February that saw market gained by 4.82% to give investors N1.4 trillion in profit.
Thank you for reading this post, don't forget to subscribe!The market sustained its positive momentum and recovery ahead of more dividend declarations, or announcement by listed companies coinciding with the outcome of the nation’s presidential elections and rates hikes by major central banks that have taken course to drive mixed yields in the international and domestic fixed income market.
The month of March began on a positive foot as the NGX-ASI posted uptrend in performance by 1.06% week on week to 55,529.21 points due to position-taking and higher traded volume as early filers continued to hit the market with impressive numbers and dividend news that translated to better yields.
In the same manner, the market capitalization rose 1.06% week on week to N30.25 trillion to give investors N315.96 billion in profits while the year-to-date return inched further to 8.35% from 7.2% last week.
Across the sectors this week, performance was largely upbeat for most of the indices that saw support from an increased inflow of funds into the equity space and continued buying sentiments, except for the oil/gas index that closed the week in a quiet mode.
Meanwhile, positive price movement was seen in the Consumer Goods (+5.65%), Banking (+1.40%), Industrial Goods (+1.16%) and Insurance (+0.92%) indexes through the week as investors posed their expectations for the early filers from these sectors that hit the market with their 2022 full-year scorecards.
At the close of the week, the level of market trading activities was bullish as we saw the total number of deals increased further by 43.07% week on week to 20,308 as stockbrokers recorded a massive 138.76% surge in trade volumes to 1.91 billion units valued at N18.44 billion, indicating an increase by 130.24% week on week.
Meanwhile, the top-gaining securities for the week were GEREGU (+27%), CILEASING (+21%), and STANBIC (+19%), while the week’s losers were CHAMS (-11%), MULTIVERSE (-10%), and SEPLAT (-9%).
Looking ahead into the new week, a mixed trend is expected to continue even as the market outlook remains chancy due to the prevailing global trend, or pullbacks that may happen in the new month as a result of profit taking.
However, the anticipated correction in the new month, or after, will strengthen recovery.
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.