BY FESTUS OKOROMADU
The Nigerian equities market recorded another week of positive performance at the close of the week ended November 24, 2023 registering a 0.17 percent week-on-week gain with the All-Share Index reaching 71,230.48 points at the close of the week.
This upward trajectory comes as market players digested the recently released Nigeria’s third-quarter economic performance, revealing a 2.54 percent uptrend.
Critical review of investor’s activities shows they engaged in strategic moves involving portfolio reshuffling and rebalancing, in anticipation of the year-end, dividend season, and the potential impact of the forthcoming Santa-Claus rally.
The market capitalization of listed equities expanded by 0.17 percent week-on-week, reaching N39.17 trillion.
Bargain hunting activities by equity investors contributed to a notable total profit of N64.61 billion, further boosting the year-to-date return of the index to an impressive 38.98 percent.
While the overall market performance was positive, detailed analysis indicates a minor setback in the Consumer Goods index, declining by 0.53 percent due to specific adverse price movements.
Conversely, the Insurance index emerged as the week’s leading gainer, experiencing a 4.07 percent week-on-week increase, primarily driven by gains in SOVRENINS, ROYALEX, and SUNUASSUR. Furthermore, the Banking and Industrial Goods indexes recorded gains of 1.94 percent and 0.04 percent, respectively, propelled by notable price increases in UNITYBNK, DEAPCAP, GTCO, MULTIVERSE, and BETAGLASS.
Meanwhile, trading activity witnessed a 19.77 percent increase in total traded volume, reaching 2.4 billion units in weekly deals, with the number of trades advancing by 1.43 percent to 33,230. However, the weekly traded value experienced a decrease of 18.16 percent, totaling N22.67 billion.
Top performers for the week included MECURE, MULTIVERSE, and UNITY BANK, with each securing impressive gains of 61 percent, 60 percent, and 57 percent, respectively.
Conversely, stocks like THOMASWY, ELLAHLAKES, and STANBIC faced declines in their share prices, experiencing price decreases of 42 percent, 10 percent, and 7 percent, respectively, on a week-on-week basis.
Commenting on the Exchange’s performance in the week under review, market analyst at Cowry Assets Management Limited said their research indicated a sustained bullish trend in the market with continued buying interest on blue-chip stocks amid ongoing asset and sector rotations.
“The prevailing bullish momentum is seen as indicative of broader market confidence in the economic outlook, accentuated by the traditional optimism associated with the holiday season. “Amidst all these, we maintain our advice to investors on taking positions in stocks with sound fundamentals and whose earnings yield and earnings per share support higher payout ratio,” it stated.
