by AKPOBOR JIRUE, Lagos
Activities in the Nigerian equities market, last week took a positive turn as the bulls reversed the previous week’s losses. Upbeat momentum was recorded across the market generated mixed signals as market players placed significant bets ahead of the Monetary Policy Committee meeting holding this week. Investor sentiment was bolstered by the publication of half-year earnings reports and the declaration of juicy interim dividends by early filers.
Trading activity presented a mixed bag, with the benchmark NGX All-Share Index rebounding by 0.87% week-on-week to 100,539.40 points, effectively erasing the previous week’s losses and signalling a return of strength to the market, albeit on low traded volume and negative market internals. Consequently, the market capitalisation of the exchange advanced by 0.86% week-on-week to N56.93 trillion from N56.44 trillion, giving investors N487.94 billion in gains. The year-to-date return of the index stood at 34.46%.
This positive movement occurred despite the delisting of three companies—Niger Insurance Plc, Resort Savings and Loans Plc, and RAK Unity Petroleum Plc—effective July 18, 2024. These delistings were in accordance with Clause 15 of the General Undertaking in the Rule Book of The Exchange, which allows delisting due to insufficient public interest, non-compliance with listing terms, or if the company becomes a subsidiary of another company.
Trading activity this week was notably mixed, with the total traded volume up by 2.22% week-on-week to 2.83 billion units and the total weekly deals rising by 8.54% week-on-week to 44,277 trades. However, the total traded value for the week decreased by 50.3% week-on-week to N42.37 billion. The market breadth was mildly positive, with 37 weekly gainers compared to 34 weekly losers.
Sectoral performance was weak, except for the NGX-Industrial Goods Index, which saw modest gains of 0.08%. The NGX-Insurance Index led the laggards, declining by 4.86% week-on-week, followed by the NGX-Consumer Goods, NGX Oil & Gas, and NGX[1]Banking indexes, which retreated by 0.20%, 0.10%, and 0.05%, respectively.
Notable performers at the close of the week included UCAP (+43%), AFRIPRUD (+34%), CUTIX (+30%), OANDO (+11%), and NAHCO (+9%), driven by positive activities that propelled their price movements. Conversely, negative investor sentiment led to sell-offs in LINKASSURE (-25%), VERITASKAP (-12%), VITAFOAM (-10%), CHELLARAM (-10%), and NGXGROUP (-9%), positioning these stocks as the top losers for the week.
Meanwhile, market analysts say the anticipation of more earnings releases and attractive dividend declarations by corporates is expected to drive positive sentiment across counters in the coming weeks. However, the outcome of the Monetary Policy Committee (MPC) meeting, along with other economic news, could stir mixed sentiments. “Market players will be closely analysing these developments to understand their potential impact on investments,” a market expert told our reporter.
Adding that, “As investors digest the outcomes of the MPC meeting and other economic indicators, their reactions could influence market trends in various directions. Therefore, while positive corporate earnings and dividends might uplift the market, economic policies and news will play a critical role in shaping overall investor sentiment. As the changing market structure and fundamentals persist, investors are advised to position themselves in stocks with sound fundamentals.”