Business
Weekly Review: Nigeria stock market gains N622bn amid decline in trades
The Nigerian stock market added N622 billion to investors’ wealth during the week, as market capitalisation rose by 0.39 per cent to close at N157.057 trillion.
This is in spite of a 0.14 per cent decline in the Nigerian Exchange Ltd. (NGX) All-Share Index to 243,462.13 points.
The market opened the week with a capitalisation of N156.445 trillion and an All-Share Index of 243,798.76 points.
Sectoral performance was largely positive, with all other indices closing higher except the NGX Main Board, NGX Consumer Goods, NGX Oil and Gas, NGX Lotus II, NGX Industrial Goods, NGX Growth and NGX Sovereign Bond indices.
These declined by 1.54 per cent, 0.15 per cent, 0.11 per cent, 0.40 per cent, 6.26 per cent, 0.09 per cent and 0.33 per cent, respectively, while the NGX Commodity Index closed flat.
Trading activity weakened during the week as investors traded 2.819 billion shares valued at N182.499 billion in 226,729 deals.
This is compared with 3.648 billion shares worth N220.568 billion exchanged in 251,861 deals in the preceding week.
The Financial Services Industry dominated market activity with 2.006 billion shares valued at N99.697 billion traded in 96,171 deals, accounting for 71.17 per cent of total equity volume and 54.63 per cent of total value traded.
The Consumer Goods Industry followed with 178.863 million shares worth N7.872 billion in 26,637 deals, while the Oil and Gas Industry recorded 151.237 million shares valued at N38.309 billion in 16,879 deals.
The three most-traded equities by volume were First Holdco Plc, FCMB Group Plc and Access Holdings Plc, which jointly accounted for 939.402 million shares worth N57.673 billion in 19,051 deals.
The trio contributed 33.33 per cent of total traded volume and 31.60 per cent of total traded value.
Market breadth weakened during the week as 44 equities advanced, down from 60 in the previous week, while 35 equities declined compared with 28 recorded previously.
A total of 67 equities closed unchanged, higher than 58 in the preceding week.
Leading the gainers’ chart for the week were First Holdco, Thomas Wyatt Nigeria, Fidelity Bank, Learn Africa and United Bank for Africa, which appreciated by N26.75, 66 kobo, N2.85, N1.30 and N4.50, respectively.
READ ALSO: Nigerian stock market ends week with N3.2 trillion gain for investors
On the losers’ table, BUA Cement, Red Star Express, International Energy Insurance, C&I Leasing and PZ Cussons Nigeria recorded the steepest declines, shedding N64.60, N4.55, 84 kobo, 85 kobo and N9.05 respectively.
Meanwhile, the NGX notified trading licence holders that 13.812 billion additional ordinary shares of 50 kobo each of Sterling Financial Holdings Company Plc were admitted to its Daily Official List on 16 July, further boosting the company’s issued share capital.
(NAN)
After two successive weeks of loss, Nigerian stocks found resilience last week amid stronger buy pressure, helping market capitalisation appreciate by 0.8 per cent.
The oil & gas index propelled the fairly good performance, thanks to substantial gains by Seplat Energy, contrary to the penultimate week when it fared worst among the five sector indices.
In a way, it is a reassurance that investors’ interest in energy stocks is building up in view of the vibrant outlook on the sector that spikes in the price of crude holds for producers as the US-Israel war against Iran continues.
The upbeat market mood owes its debt to the profound revenue growth and, in some cases, a surge in profit that oil companies recorded at half-year locally and globally.
Looking forward, hopes are high this week that two key positives – Nigeria’s reclassification as a frontier market by FTSE Russell and its upgrade from stable to positive by Moody’s last week – could drive stocks further upwards.
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Zenith Bank
Zenith Bank tops this week’s pick on the basis of its sound fundamentals and for trading below its intrinsic value. The lender’s net profit ratio (NPR) is 21.8 per cent, while the price-to-earnings (PE) ratio is 4.8x. Its 14-day relative strength index (RSI) is 55.2.
MTN Nigeria
MTN Nigeria makes the selection due to its robust fundamentals. The telecom operator’s NPR is 21.9 per cent, while the PE ratio is 11.6x. Its 14-day RSI is 28.8.
AXA Mansard Insurance
AXA Mansard Insurance makes the cut by virtue of its strong fundamentals and for trading below its intrinsic value. The NPR of the insurer is 3.4 per cent, while the PE ratio is 29.8x. Its 14-day RSI is 49.6.
Unilever Nigeria
Unilever makes the list on account of its sound fundamentals. The company’s NPR is 14.1 per cent, while the PE ratio is 19.6x. Its 14-day RSI is 30.5.
Jaiz Bank
Jaiz Bank appears on the pick based on its attractive fundamentals. The NPR of the bank is 28.5, while the PE Ratio is 11.6. The 14-day RSI is 39.2.
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