The Nigerian Exchange Limited (NGX) finished October 2023 on a positive note yesterday thanks to significant price gains reported by several bluechip companies, most notably Dangote Cement and Geregu Power Plant. This caused the market capitalization to surge by N536 billion.
The All-Share Index (ASI) increased by 975.13 points, or 1.45%, at the end of yesterday’s trading to close at 68,111.71 points. Additionally, market capitalization increased to settle at N37.421 trillion, up N536 billion.
Price depreciation of major and medium-sized capitalization companies, such as those of Nigerian Breweries, Dangote Cement, Geregu Power, Stanbic IBTC Holdings, and Nigerian Aviation Handling Company (NAHCO), propelled the upswing.
Analysts at United Capital Plc responded to the market's performance by stating: “We expect mixed investor sentiments in the equities market to persist as corporates continue to release earnings.”
“We anticipate the market to trade in line with earnings outcome, as it helps shape their outlook on the near-term prospects of the health of the domestic economy,” stated Vetiva
Dealing Brokerage regarding what will shape the market in the upcoming trading session. Market mood was bullish as indicated by market breadth, with 45 equities rising compared to 16 falling. The company with the biggest price gainer, Northern Nigeria Flour Mills (NNFM), closed at N18.15 kobo, up 10%. UAC of Nigeria (UACN) increased by 9.54 percent to settle at N14.35 kobo, while Chellaram trailed with a gain of 9.77 percent to close at NN3.82.
The Initiates Plc (TIP) climbed 9.43% to settle at N1.16 kobo, while NAHCO increased by 9.45% to close at N26.05 kobo. Conversely, Meyer Plc topped the losers' leaderboard with a 9.87 percent closing price of N2.74 kobo, ahead of all other competitors. Regency Alliance Insurance lost 8.33 percent to settle at 33 kobo, while Abbey Morgage Bank trailed with a fall of 9.71 percent to close at N1.86 kobo.
Jaiz Bank’s value decreased by 5.95% to close at N1.58 kobo, while R.T. Briscoe Nigeria lost 6.00% to close at 47 kobo.
With 430.393 million units traded in 7,656 deals for N8.258 billion, the overall volume of trades climbed by 89.55 percent. The activity was dominated by transactions involving Universal Insurance shares, which totaled 94.753 million shares valued at N23.105 million.
Custodian Investment traded 33.245 million shares worth N242.014 million, while United Bank for Africa (UBA) came in second with an account of 51.263 million shares valued at N1.003 billion.
Zenith Bank traded 24.421 million shares for N818.460 million, while Transnational Corporation (Transcorp) traded 32.477 million shares worth N200.850 million. Seplat Energy Plc, however, reported N478.1 billion in revenue for its third quarter of operations, compared to N258.7 billion for the same period in 2022.
The unaudited result of the corporation for the nine months ending September 30, 2023, specifically, indicated a 31% increase in sales to N478.1 billion from N258.7 billion during the same period in 2022.
Additionally, its gross profit rose to N245.6 billion from N118.5 billion reported during the same time in 2022.
The directors are recommending that the firm pay a dividend of US 3 cents per share, in accordance with the higher US 12-cent core annual dividend, based on the improved performance.
The company reports that whereas output during the first nine months of 2023 averaged 48,152 boepd, an increase of 11% above 2022 activity, and the production of liquids climbed by 17% during the same period.
The enhanced uptime at Forcados Oil Terminal and the accessibility of the Amukpe-Escravos pipeline, which has continued to sustain its revenue, were credited by the company for better performance.
Strong cash generation further reinforced the balance sheet, it was said.
