Investors Rejoice As Stock Market Shows Strength, Accumulating N1.85 Trillion

Investors Rejoice As Stock Market Shows Strength, Accumulating N1.85 Trillion....KINDLY READ THE FULL STORY HERE▶

Despite experiencing profit-taking activities in mid-week trading last week, the stock market concluded on a positive note, with investors pocketing impressive gains totaling N1.85 trillion from their investments…….CONTINUE READING

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The market capitalization, representing the overall value of investments on the Nigerian Exchange Limited (NGX), saw a significant surge to N45.442 trillion on Friday, up from the previous week’s N43.593 trillion.

Market analysts highlighted the ongoing trend of portfolio rebalancing on the Exchange, with a focus on approaching earnings and the dividend season. The anticipation of unaudited fourth-quarter 2023 (Q4’23) results, expected to be released shortly, contributed to this activity.

Several companies, including BUA Foods and others, notified the NGX and investors about their board meetings and closed periods in preparation for the 2023 full-year financial reports. These actions occurred against the backdrop of the January effects and other factors related to the prevailing economic headwinds.

Additionally, the NGX All Share Index (ASI) experienced a notable increase, reaching 83,042.96 points compared to the previous week’s 79,664.66 points. This translated to a 4.2% week-on-week (W/W) gain, with the year-to-date (YtD) gain standing at +11.1%.

Examining specific stock performances, investor interest in BUA Foods drove a 15.5% increase in its share price, while Dangote Cement, TRANSCORP, and Guaranty Trust Holding Company (GTCO) witnessed increases of 7.7%, 17.9%, and 8.9%, respectively.

In terms of sectoral performance, the Consumer Goods Index rose by 9.6%, the Insurance Index by 7.6%, the Banking Index by 5.1%, and the Industrial Goods Index by 4.8%. However, the Oil and Gas Index experienced a decline of 1.6%.

Analysts at Cordros Research reacted to the market performance, stating, “In the short term, we expect market performance to be dominated by the bulls.” They anticipate strong positioning for the release of 2023 full-year earnings and dividends, outweighing any profit-taking activities. However, they advise investors to choose fundamentally justified stocks due to the prevailing weak macro environment affecting corporate earnings.

InvestData Consulting analysts also commented on the market, expecting mixed sentiment and profit-taking to persist in the coming week. They highlight the ongoing portfolio adjustments ahead of unaudited Q4 2023 results and potential volatility tied to the December Consumer Price Index (CPI) and the upcoming Monetary Policy Committee (MPC) meeting. They suggest that a pullback at this stage could strengthen the upside potential and recommend investors take advantage of any price corrections, considering both global and domestic trends and events.

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