Equities extend gains to four weeks ahead of year-end rally

• Investors’ fortune rises by N333b as analysts predict brighter outlook

With the yuletide season and year-end celebrations expected to usher in a bullish run, the capital market has extended its bullish momentum for the fourth consecutive week due to buying interest in BUA Cement Plc (+19.1 per cent), Nestle Nigeria Plc (+1.7 per cent) and Ecobank Transnational Incorporated Plc (+11.4 per cent).

Consequently, the all-share index and market capitalisation appreciated by 1.51 per cent to close the week at 48,881.93 and N26.63 trillion respectively.

Similarly, all other indices finished higher except NGX CG, NGX Premium, NGX Banking, NGX Pension, NGX AFR Bank Value, NGX AFR Div Yield, NGX MERI Growth, NGX MERI Value and NGX Sovereign Bond indices which depreciated by 0.91 per cent, 1.23 per cent, 0.25 per cent, 0.39 per cent, 1.53 per cent, 0.79 per cent, 0.79 per cent, 0.21 per cent and 0.01 per cent respectively, while the NGX Growth and NGX ASeM indices closed flat

Reacting to market performance, the Chief Research Officer of Investdata Consulting Limited, Ambrose Omordion said although market volatility persists, he added that the trend presents a huge opportunity for discerning investors and technical traders to buy low and sell high as the primary trend of recovery is still intact ahead of year-end seasonality and expectation.

“As position-taking in some of the major sectors of the market continued, especially in industrial goods and banking stocks ahead of the full-year earnings season, with bargain hunters and speculators taking advantage of this pullback or selloffs to buy low amid a high volatility, investors should target companies with a consistent track record of dividend payment with strong fundamentals and growth prospect that will support further capital appreciation and dividend payout.”

Cordros Capital said: “We expect the bulls to retain their dominance as buying activities due to positioning for 2022FY dividends will likely suppress selling activities.
“In addition, we believe the outcome of the bond auction scheduled to be held next week will also shape market sentiments. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the unimpressive macro story remains a significant headwind for corporate earnings.”

Afrinvest Securities Limited said: “The coming week, we anticipate a mixed performance as investors take profit while seeking bargain-hunting opportunities.

Further breakdown of last week’s trading showed that heavy transactions in the shares of UPDC Real Estate Investment Trust, FBN Holdings Plc and Transnational Corporation of Nigeria (Transcorp) Plc last week lifted the volume of shared traded as a turnover of 1.2 billion shares worth N15.2 billion was recorded on 15,317 deals by investors on the floor of the exchange.

The volume of shares traded was, however, higher than a total of 839.9 million valued at N12.4 billion which changed hands in 16,183 deals on December 2, 2022.

The top three equities accounted for 765.2 million shares worth N4.3 billion in 847 deals, contributing 62.4 per cent to the total equities volume.

On the sectoral activity chart, the financial services industry (measured by volume) led the chart with the financial services industry (measured by volume) led activity chart with 514.1 million shares valued at N5.1 billion traded in 6,489 deals; thus contributing 41.9 per cent and 33.4 per cent to the total equities turnover.

The construction/real estate industry followed with 463.3 million shares worth N1.6 billion in 210 deals. The conglomerate Industry, with a turnover of 69.017 million shares worth N86.431 million in 528 deals.

A total of 1,169 units valued at N500, 331.26 were traded in 26 deals compared with a total of 2,400 units valued at N1.256 million transacted last week in 36 deals.

A total of 20,863 units valued at N22.124 million were traded this week in 32 deals compared with a total of 9,687 units valued at N6.330 million transacted last week in 18 deals.

Source: Guardian.ng

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