Paragraph 1: Nigerian Exchange Continues Bullish Trend with N203 Billion Gain
The Nigerian Exchange extended its positive momentum on Tuesday, August 1st, 2023, as investors reaped substantial gains, adding N203 billion to the market capitalization. This surge propelled the market cap to an impressive N89.7 trillion at the close of trading. The All-Share Index (ASI), the benchmark indicator of market performance, climbed by 321.59 points, representing a 0.23% increase, to settle at 141,761.36. This positive performance followed a gain of N285 billion recorded on the previous trading day, Monday. The market’s year-to-date gain now stands at a robust 37.73%, demonstrating resilience despite a minor 0.6% decline observed over the past week.
Paragraph 2: Trading Activity and Market Breadth
Trading activity on Tuesday saw a notable increase in both volume and value. A total of 604.99 million shares, valued at N12.89 billion, were exchanged across 28,819 deals. This represents a 3% rise in trading volume and a substantial 15% jump in turnover compared to the preceding trading session. However, the number of deals concluded decreased by 13%. Market breadth, a measure of overall market sentiment, closed negative, indicating more declining stocks than advancing ones. Specifically, 27 stocks recorded gains, while 33 stocks experienced losses.
Paragraph 3: Top Gainers and Losers
NCR Nigeria led the pack of gainers, posting a maximum allowable 10% increase in its share price, closing at N11.55 per share. Skye Shelter Fund followed closely with a 9.99% surge, reaching N301.55 per share. Other notable gainers included Berger Paints (9.06% to N34.90), Beta Glass (8.16% to N486.00), and Cadbury Nigeria (8.04% to N62.50). Conversely, Legend Internet topped the losers’ list, plummeting by 10% to N5.40 per share. Secure Electronic Technology also witnessed a significant decline of 9.26%, closing at 98 kobo per share. Cutix and UAC of Nigeria trailed with losses of 8.97% and 8.69%, settling at N3.55 and N73.00 per share, respectively.
Paragraph 4: Most Active Stocks by Volume and Value
FCMB Group dominated trading activity in terms of volume, with 89.3 million shares worth N980.8 million exchanged. Veritas Kapital Assurance followed with 68.5 million shares traded, while Aiico Insurance and Secure Electronic Technology recorded significant volumes of 36.2 million and 27.3 million shares, respectively. In terms of value traded, Lafarge Africa led the pack with N1.63 billion, followed by MTN Nigeria (N1.46 billion), GTCO (N1.18 billion), FCMB Group (N980.8 million), and Zenith Bank (N608.9 million). These figures underscore the significant interest in these companies among investors.
Paragraph 5: Sectoral Performance and Analyst Commentary
Sectoral indices generally reflected the positive market sentiment. The Banking Index recorded a 0.73% gain, contributing to its impressive year-to-date growth of 45.33%. The Consumer Goods Index also performed strongly, advancing by 0.48% and extending its remarkable year-to-date return to 87.32%. The Oil & Gas Index and the Pension Index also posted gains of 0.48% and 0.37%, respectively. The Main Board Index, reflecting the performance of larger listed companies, rose by 0.31%, culminating in a year-to-date return of 37.81%. Market analysts attributed the positive performance to sustained investor interest in banking and consumer goods stocks, signaling renewed confidence in equities amidst prevailing market volatility.
Paragraph 6: Market Context and Outlook
The Nigerian Exchange’s bullish streak underscores the resilience of the Nigerian equity market despite broader economic challenges. This positive performance, fueled by strong gains in key sectors like banking and consumer goods, suggests a renewed appetite for equities among investors. The increased trading activity, both in volume and value, further reinforces this positive outlook. However, the negative market breadth, with more losers than gainers, serves as a reminder of the inherent volatility in the market. The future performance of the Nigerian Exchange will likely depend on a combination of factors, including macroeconomic conditions, company-specific performance, and global market trends. Continuous monitoring of these factors will be crucial for investors navigating the Nigerian equities landscape.
