March 18, 2024

Stock market sustains bullish trend as investors gain N2.1trn

The stock market sustained bullish trend last week as investors on the Nigerian Exchange Limited, NGX, gained N2.1trillion.

Though the market recorded mixed sentiment, the gains outweighed the losses as the NGX market capitalisation, which represents the total value of investment on the Exchange, surged to N59.416 trillion at the close of trading on Friday from N57.293 trillion the previous week

In similar manner, another stock market performance indicator, NGX All Share Index, ASI increased by 3.7% to 101,085.25 points from 101,330.85 points.

Analysis of transactions last week showed that a total turnover of 1.773 billion shares worth N52.867 billion in 44,713 deals was traded by investors on the floor of the Exchange, in contrast to a total of 2.157 billion shares valued at N108.824 billion that exchanged hands previous week in 51,556 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.136 billion shares valued at N23.185 billion traded in 19,896 deals; thus contributing 64.04% and 43.86% to the total equity turnover volume and value respectively. The Conglomerates industry followed with 339.390 million shares worth N5.874 billion in 3,650 deals. The third place was the Consumer Goods Industry, with a turnover of 82.645 million shares worth N6.724 billion in 6,155 deals.

Trading in the top three equities namely Transnational Corporation Plc, Guaranty Trust Holding Company Plc and Access Holdings Plc (measured by volume) accounted for 677.439 million shares worth N17.287 billion in 7,789 deals, contributing 38.21% and 32.70% to the total equity turnover volume and value respectively.

Reacting to market development, analysts at Investdata Consulting, said: “We expect a continuation of the mixed sentiments as investors and traders digest the latest inflation rate at over 30% and also developments at the fixed income market, just as more corporate earnings with dividend are expected to hit the market and investors take advantage of low valuation to position and rebalancing portfolio.
“This is amid the volatility and pullbacks that add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”