In four days of active trading last week, investors renewed their interest in some listed Tier-1 banks, and BUA Cement Plc increased the Nigerian Stock Exchange (NGX) market capitalisation by N119 billion to close at N25.91 trillion.
Last week, the stock market reopened for four trading days after the Federal Government declared Monday a public holiday to commemorate the 2022 Eid-el-Maulud celebration.
Although the trading week was cut short, it was enough for the NGX’s stock market to break its five-week losing streak.
As a result, the All-Share index rose 0.5 percent week on week (w/w) to close at 47,569.04 basis points, up from 47,351.43 basis points when trading began.
About 8.7 per cent gain in BUA Cement to close at N56.50 per share and some tier-1 banks such as: Guaranty Trust Holding Company gained 5.3 per cent to close at N17.90; Access Holdings appreciated by 5.3per cent to close at N8.00 per share , and Zenith Bank rose by 2.3per cent to close at N20.00 per share – spurred the weekly stock market gain.
Consequently, the stock market in its Month-till-Date (MtD) and Year-till-Date (YtD) returns settled at -3.0per cent and +11.4per cent, respectively.
Activity levels were mixed, as trading volume declined by 16.2per cent w/w while value traded increased by 34.9per cent w/w.
Analysing by sectors, the Industrial Goods index added 3.2per cent; the Banking index gained 1.9 per cent, and the Insurance index rose by 1.7per cent, while the Oil & Gas depreciated by 2.1per cent and Consumer Goods down by 0. 7per cent at closed in the red.
On the stock market outlook for this week, analysts at Cordros Research said;
we believe investors will remain reluctant to leave gains in the market.
As such, we expect intermittent profit-taking to persist. However, we expect this to be tempered by bargain-hunting activities from early birds ahead of the Q3 2022 earnings season.
Notwithstanding, we advise investors to take positions in only fundamentally sound stocks as the fragility of the macro environment remains a significant headwind for corporate earnings.
