January 16, 2023
The domestic bourse bounced back last week with investors reaping N896 billion return, while market capitalisation closed higher at N28.602 trillion from N27.706 trillion penultimate week.
Also another benchmark indicator of the equities market, the composite Nigerian Exchange Limited, NGX All-Share Index, bounced back to advance 2.5% Week-on-Week, WoW, to close at 52,512.48 points.
The rise in the benchmark Index was driven by bargain-hunting activities in MTN which garnered 6.9%, Dangote Cement 3.1% and BUA Cement 3.6%.
Analysts further emphasized that the rebound was also driven by position-taking in dividend-paying companies as fourth-quarterand full-year earnings begin to take centre- stage this January in the face of positive sentiment and market breadth.
These are expected to come alongside the December consumer price index in the week to give direction and influence the flow of liquidity in the economy.
Market analysis showed that the Year to Date, YtD return increased to 2.5%.
On activity levels, the trading volume and value increased by 39.5% and 9.1% W/W, respectively. Sectoral performance was largely positive following gains in the Banking Index which went up by 3.5% followed by Industrial Goods Index 3.3%, Oil and Gas Index 3.2% and Consumer Goods Index 0.7%. On the flip side, the Insurance Index declined 1.6% being the sole loser of the week under review.
Comentimg on market performance, analysts at Cordros Research said: “In the short term, we expect market performance to be dominated by the bulls, as positioning for 2022 full year earnings releases and accompanying dividends declarations should outweigh profit-taking activities. Notwithstanding, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings.
In their own view, analysts at Cowry Asset stated:” On the outlook, we expect the positive sentiment to continue in the new week as investors continue to position ahead of the December consumer price index from the NBS and the releases of the fourth quarter earnings by corporates. However, we continue to advise investors to trade on companies’ stocks with sound fundamentals.”
