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By Chinwendu Obienyi
Nigeria’s stock market deepened its move into the green territory as investors’ wealth continued to rise, hitting N1.13 trillion, boosting market capitalisation to N34.326 trillion in the first trading week of July.
Despite gaining in 4 out of 5 trading sessions, the NGX All-Share Index (ASI) recorded a 3.40 per cent week-on-week (w/w), to close at 63,040.41 points, up for the 7th straight week. The upturn was due to bargain hunting in FBN Holdings, Stanbic and Dangote Cement stocks.
Similarly, market capitalisation, the aggregate value of listed equities, which opened the trading month at N33.197 trillion, rose by N1.13 trillion to close the week at N34.326 trillion. Accordingly, the year-to-date (YTD) return stood at +23 per cent.
Across the market counters, the Banking (+9.8 per cent), Oil and Gas (+7.2 per cent), Industrial Goods (+2.2 per cent), and Insurance (+0.7 per cent) indices closed in the green while the Consumer Goods (-0.2 per cent) index declined.
Activity levels mirrored the market’s broad gauge as trading volume and value surged by 324.7 per cent w/w and 250.0 per cent w/w, respectively. According to market data, a total turnover of 9.831 billion shares worth N145.408 billion in 54,478 deals was traded by investors on the floor of the Exchange, in contrast to a total of 3.369 billion shares valued at N41.986 billion that exchanged hands last week in 39,764 deals.
The Financial Services Industry (measured by volume) led the activity chart with 8.349 billion shares valued at N127.944 billion traded in 27,291 deals; thus contributing 84.92 per cent and 87.99 per cent to the total equity turnover volume and value respectively.
The Conglomerates Industry followed with 420.770 million shares worth N1.683 billion in 2,840 deals while the ICT Industry recorded a turnover of 220.121 million shares worth N2.198 billion in 3,237 deals.
Trading in the top three equities namely FBNH Holding Plc, FCMB Group Plc and United Bank for Africa (measured by volume) accounted for 6.071 billion shares worth N102.488 billion in 7,505 deals, contributing 61.75 per cent and 70.48 per cent to the total equity turnover volume and value respectively.
Reacting to the market performance, analysts said the new administration’s foreign currency and economic reforms are bringing investors back to the stock market.
They added that with the half-year earnings season on the horizon, investors will look for clues on the sustainability of the decent corporate earnings released for Q1 2023.
