Bullish sentiments continued to dictate proceedings on the domestic bourse as the gradual release of corporate earnings bolstered buying interests in dividend-paying stocks.
This resulted in the stock market capitalisation of the Nigerian Exchange Limited (NGX) crossing the N25 trillion mark as it rose by N137 billion week-on-week (w/w) at the close of trading week on Friday. Specifically, the NGX All Share Index (ASI) and Market Capitalization appreciated by 0.55 per cent and 0.54 per cent to close the week at 46,205.05 and N24.898 trillion respectively.
The positive sentiment according to market operators was as a result of bargain hunting in ETI (+44.8 per cent), Guinness (+14.0 per cent), International Breweries (+18.0 per cent), Airtel Africa (+10.0 per cent) and Total Energies (+8.6 per cent) spurred the weekly gain.
Reacting to the performance, analysts at Cordros Capital, in their weekly assessment of the market, said, that with the outcome of the Monetary Policy Committee (MPC) meeting aligning with market expectations amid negative real returns in the fixed income market, they expect investors to continue to cherry-pick stocks with attractive dividend yields.
“However, we advise investors to take positions in only fundamentally justified stocks as the fragility of the macroeconomic environment remains a significant headwind for corporate earnings”, they said.
The Financial Service Industry (measured by volume) led the activity chart with 793.120 million shares valued at N8.151 billion traded in 10,947 deals; thus contributing 54.77 per cent and 42.72 per cent to the total equity turnover volume and value respectively.
The ICT industry followed with 215,543 million shares worth N3.740 billion in 1,468 deals while the conglomerates industry recorded a turnover of 98.299 million shares worth N190.248 million in 889 deals.
Trading in the top three equities namely; Guaranty Trust Holding Company Plc, Courtville Business
Solutions Plc and Chams Plc (measured by volume) accounted for 308.076 million shares worth N2.871 billion in 2,225 deals contributing 21.27 per cent and 15.05 per cent to the total equity turnover volume and value respectively.