Equities Investors See N183bn Gain as NGX Extends Rally -Market Wrap

Market Wrap: Equities investors see about N183 billion gain as Nigerian Exchange (NGX) extends rally. The booming local exchange has been spinning cash for stockholders, becoming an investment platform with returns higher than the average inflation rate.

Data from the Nigerian Exchange indicated a 0.37% gain in the All Share Index, which closed at 71,112.99 points on Friday.  Stockbrokers said this uptick occurred amidst a mild level of profit-taking activities.

In the just concluded week, market players carefully digested the latest inflation data, which surged to 27.33% in October from the previous month’s 26.72%.  

Notably, the inflationary pressures, as reflected in the recent data, have added an extra layer of complexity to market dynamics, Cowry Asset Limited said in its market update. 

Equities investors were noted to keenly observe how weakening macroeconomic indicators coupled with the year-end seasonality, will influence market sentiment. Cowry Asset Limited explained that the third quarter brought impressive corporate earnings, complemented by rising yields in the fixed income market.

According to stockbrokers, this dual scenario presents a mixed bag of opportunities and challenges for equity investors. In terms of market capitalization, listed equities recorded a 0.47% week-on-week increase, reaching N39.11 trillion.

The equities market gained N182.86 billion, contributing to the year-to-date return, which extended further to 38.75%, based on data from the Nigerian Exchange. Despite a relatively positive overall performance, the Banking and Industrial indexes faced minor setbacks, declining by 0.04% and 1.18%, respectively stockbrokers added in a note.

This dip was attributed to adverse price movements in specific stocks such as FIDELITYBNK, ACCESS, BUACEMENT, and BETAGLASS. Conversely, the Oil & Gas sector emerged as the week’s leading gainer, experiencing a 2.61% week-on-week increase. The uptrend was fuelled by gains in SEPLAT and OANDO.

The Insurance and Consumer Goods sectors posted gains of 0.91% and 0.2%, respectively, driven by significant increases in PRESTIGE, CHIPLC, NASCON, GLAXOSMITH, and OKOMUOIL.

Market updates indicated that trading activity during the week witnessed a lacklustre performance, with a 19.80% decline in total traded volume, amounting to 2.03 billion units. The weekly traded value also decreased by 38.86%, totalling N27.69 billion.

Stock analysts at Cowry Asset Limited update showed that top performers included DEADCAP, CILEASING, and MECURE, each securing impressive gains of 55%, 50%, and 46%, respectively, on a week-on-week basis.

On the other hand, JAPAULGOLD, BETAGLASS, and TIP, faced declines in their share prices, experiencing losses ranging from -14%, -10%, and -10%, respectively, on a week-on-week basis. Futureview US Dollar Fund Return Hits 7.42%

Projecting into the new week, Cowry Research anticipates the prevailing bullish momentum to persist. The firm noted that market participants are expected to target dividend-paying stocks, driven by profit-taking and portfolio rebalancing. #Equities Investors See N183bn Gain as NGX Extends Rally -Market Wrap
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