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Equities Market rebounds with 0.09% gain as investors eye Q3 earnings

The Nigerian equities market witnessed a slight rebound in last week’s trading, as the All-Share Index (ASI) posted a modest gain of 0.09 per cent, closing at 97,606.63 points, up from the previous week’s 97,520.54 points. This recovery marks the return of bullish sentiment following a period of profit-taking.

Investor activity was driven by selective buying, particularly in mid and large-cap stocks, pushing market capitalization to N56.09 trillion, compared to N56.03 trillion the week before. As a result, equity investors gained N49.53 billion over the week, with the year-to-date (YtD) return of the ASI advancing to 30.54 per cent.

Analysts at Cowry Research highlighted the renewed confidence in the market, stating that “expectations of further recovery are supported by the upcoming Q3 earnings season and the positive impact of government reforms on economic growth.”

Despite the uptick, overall market momentum remained relatively weak. Traded volumes saw a 3.92 per cent increase week-on-week (WoW) to 2.97 billion shares executed in 42,482 deals, representing a 7.5 per cent rise from the previous week. However, the total trade value dropped sharply by 76.24 per cent to N31.51 billion, as cautious investor sentiment lingered ahead of the anticipated September 2024 inflation report.

Sectoral performance was mixed, with three of the five major sectors recording gains. The Oil & Gas index led the market, rising by 1.57 per cent, spurred by gains in Seplat shares. The Banking and Insurance sectors also posted gains of 0.47 per cent and 0.08 per cent, respectively, driven by strong performances from FBN Holdings, LASACO (after its share suspension was lifted), and PRESTIGE Assurance.

On the downside, the Consumer Goods and Industrial Goods sectors registered losses of 1.25 per cent and 0.13 per cent, respectively. Stocks like TRIPPLEG, Tantalizer, and Guniness led the declines.

Top gainers for the week included Mecure, which added 20 per cent to close at N10.10 per share, UPL, up 18 per cent to N2.55 per share, and LASACO Assurance, which gained 17 per cent to close at N2.70 per share. Fidelity Bank, PZ Cussons, and Julius Berger also posted notable gains of 13, 12, and 9 per cent, respectively. On the flip side, TrippleG saw a steep 60 per cent loss, followed by Daarcomm (-25%) and AFRIPRUD (-13%).

The Financial Services Industry (measured by volume) led activity for the week, with 1.485 billion shares worth N17.96 billion traded in 19,613 deals, contributing 50.05 per cent and 57.02 per cent to the total equity turnover volume and value, respectively. The Services Industry followed with 1.108 billion shares valued at N775.26 million in 2,675 deals, while the Agriculture Industry placed third, recording a turnover of 93.9 million shares worth N1.25 billion in 2,517 deals.

Tantalizer Plc, Coronation Insurance Plc, and Fidelity Bank Plc were the top traded equities by volume, accounting for 1.625 billion shares worth N3.91 billion in 1,814 deals. This represented 54.80 per cent of the total turnover volume and 12.40 per cent of the total value traded on the exchange during the week.

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