In spite of the customary election worries, the Nigerian stock market managed to maintain gains throughout the course of five trading days, with investors making N623 billion.
Additionally, there was a significant increase in the amount of shares traded, as 799.8 million shares worth N29.4 billion were traded in 14,194 transactions by investors on the Exchange’s floor, exceeding the N20.5 billion worth of 751.9 million units traded in 15,822 transactions on February 17, 2023.
Market capitalization increased by N623 billion or 2.13 percent last week to end at N29.934 trillion, up from N29.310 trillion on February 17, 2023, while the All-Share Index increased by 1,144.75 points to 53,804.46 points.
The NGX Sovereign Bond index, which declined by 0.07 percent, was the only index to end lower in a similar fashion. The NGX Insurance and NGX ASeM indices, meanwhile, closed at their respective levels.
Deal-hunting operations in Airtel Africa (+3.9%), BUAfood (+15.6%), and Geregu (+13.8%) contributed to the better results.
Experts anticipated cautious trading this week, pointing out that the direction of the market will be determined by the results of the election.
Cordros Capital stated: “We believe investors will be focused on the outcome of the highly anticipated 2023 Presidential elections. Thus, we see more of a ‘choppy theme’ as cautious trading dominates the trading activities.”
“Overall, we advise investors to seek trading opportunities in only fundamentally sound stocks as the weak macro story remains a significant headwind for corporate earnings.”
Analysts at Vetiva Dealings and Brokerage stated that investors purchased stocks in all industries as all sectors ended the day in the black. The week will likely begin with a mixed session, and the path the market takes next week will depend on the results of the election.
Afrinvest stated that: “Despite the upbeat investor sentiment, we anticipate cautious trading next week as post-election developments unravel.”
The financial services sector, as defined by volume, topped the activity chart last week, trading 480.1 million shares worth N6.1 billion in 6,319 deals, or 60.03 percent of the total volume of transactions.
The Utilities sector came in second with 126.9 million units valued at N12.9 billion transacted in 289 deals. With 1,575 transactions totaling 54.01 million shares worth N5.9 billion, the IT sector came in third.
Trade in the top three stocks, Geregu Power Plc, Guaranty Trust Holding Company Plc, and Zenith Bank Plc, accounted for 307.8 million shares valued at N17.5 billion in transactions, or 38.48 percent of the equity turnover volume, when evaluated by volume.
In contrast to the previous week, which saw a total of 2,895 units worth N452,808.58 traded in 29 deals, this week saw a total of 5,760 units of Exchange Traded Funds (ETFs) valued at N1.1 million traded.
In addition, 54,323 bonds worth N54.4 million were traded this week in 9 deals as opposed to 24,298 bonds worth N25.5 million that were traded in 12 deals last week.
In the price movement chart, 39 stocks saw their prices rise this week, compared to 36 stocks the week before. On the other hand, 22 stocks also saw a decline in value, falling from 27 the week before, while 96 stocks stayed steady, an increase from the 94 stocks seen the week before.
