After last week’s trading in the capital market’s equities segment, the
industrial index led the gainers’ chart as investors’ growing desire for Dangote
Cement (+53.9%) and BUA Cement (+45.8%) lifted the sector by 46.9 percent.
The development caused the sector to grow by 59.4% year-to-date (YTD), making it the
best-performing this year.
Next in line, at 14.9%, was the insurance industry. The consumer goods index increased by
+8.2 percent, while the oil and gas industry lagged with 8.8 percent. But the banking
index lost 0.1% of its value, making it the only loser of the week.
Investors on the exchange floor completed 79,012 deals totaling 5.2 billion shares valued at
N77.8 billion. This is less than the 80,064 deals totaling 5.7 billion units valued at N88.8
billion that were completed during the previous week.
With 3.2 billion shares worth N33.4 billion exchanged in 36,276 deals, the financial services
sector dominated the activity chart when measured by volume. This sector accounted for
61.6% of the overall stock turnover volume.
Following with 473.6 million units valued at N8.2 billion in 6,325 agreements was the
conglomerate’s industry. The consumer goods sector came in third place with 12,550 deals
totaling 460.1 million shares valued at N17.5 billion.
Transnational Corporation Plc, Jaiz Bank Plc, and AIICO Insurance Plc were the top three
stocks traded, according to the Exchange, based on volume. These three companies
accounted for 1.1 billion shares valued at N9.5 billion in 10,047 transactions, or 21.09
percent of the total equity turnover.
Furthermore, this week saw a total of 337 deals involving 100,213 units of exchange-traded
products (ETPs) valued at N23.2 million, as opposed to 334 deals totaling 75,890 units
valued at N33.486 million the previous week.
Additionally, during the previous week, 51,246 units worth N49.9 million were transacted in
33 deals, whereas 142,409 units valued at N140.309 million were sold in 39 deals.
All things considered, the all-share index broke beyond the 90,000-point barrier, rising by 13.84
percent to reach the highest level ever recorded at 94,538.12 points. At the same time,
market capitalization increased 13.85 percent to conclude at N51.735 trillion. As a result, the
year-to-date return increased to +26.4%.
“In the short term, we expect market performance to be dominated by the bulls, as
positioning for 2023 full-year earnings releases and accompanying dividend declarations
should outweigh profit-taking activities,” Cordros Research analysts stated regarding the
state of the market.
Despite this, we encourage investors to only buy in stocks that make sense fundamentally
because the dismal macro environment continues to be a major drag on corporate
profitability.
Afrinvest analysts stated: “We anticipate that the upbeat feeling will persist next week,
tempered by profit-booking and at a lower price. As a result, we suggest cautious entrance
and fundamentally based equity selection.”
Vetiva Dealings and Brokerage made the following statement: “This week’s strong
performance was mostly driven by the industrial products sector, which returned 46.88
percent w/w. We anticipate a mixed trading week coming up as investors continue to
exercise caution in the market.”
