Capital market analysts expect the Nigerian stock market to maintain its bullish trend this week on continued bullish sentiment as trading enter into the third quarter (Q3).
For the sixth straight week, the index remained above the 60,000 mark as many stocks hit new 52-week highs on continued inflows of funds. This brings the monthly gain in June to 9.23 per cent as the second quarter window dressing by portfolio managers comes to a close for the new reporting and earning season.
Analysts Optimism
In the coming week, analysts at Cowry Asset Management Limited said: “we anticipate the market to maintain its bullish trend on continued bullish sentiment into a new quarter while window dressing activities by fund managers continues. This is expected to be driven by the approach to the Q2 reporting and earning season as investors position for stocks with attractive fundamentals.”
Also, analysts at Cordros Securities Limited said: “we expect investors to trade cautiously in the week ahead as they anticipate the H1, 2023 earnings season. Notwithstanding, we reiterate the need for taking positions in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.”
Last Week’s Trading Activities
Amid the shortened trading week due to the public holidays on Tuesday and Wednesday to mark the Eid-el-Kabir celebrations, the domestic bourse continued its uptrend as sustained bargain-hunting activities in blue-chip stocks pushed the All-Share Index above the 60,000 psychological mark, the highest level since May 2008.
The All-Share Index gained 2.98 per cent week-on-week (W-o-W) to close at 60,968.27 points. Similarly, market capitalisation rose W-o-W by N961 billion to close at N33.198 trillion.
Remarkably, the market traded positively in all three trading sessions, driven specifically by interest in Airtel Africa, MTN Nigeria Communications (MTNN) and Guaranty Trust Holding Company (GTCO) stocks.
Across the market sectors, the NGX Banking index recorded a weekly gain of 7.78 per cent. NGX Oil & Gas index rose by 4.56 per cent while NGX Insurance index gained 1.90 per cent W-o-W.
NGX Consumer Goods index up by 1.1 per cent, and NGX Industrial Goods index appreciated by 0.6 per cent for the week.
The market breadth for the week was positive as 77 equities appreciated in price, 59 equities depreciated in price, while 20 equities remained unchanged. Ikeja Hotel led the gainers table by 33.00 per cent to close at N3.99, per share. Transcorp Hotels followed with a gain of 32.95 per cent to close at N23.40, while Eterna went up by 32.49 per cent to close to N21.00, per share.
On the other side, Secure Electronic Technology led the decliners table by 13.16 per cent to close at 33 kobo, per share. Guinea Insurance followed with a loss of 12.50 per cent to close at 21 kobo, while Universal Insurance declined by 12.50 per cent to close at 21 kobo, per share.
Overall, a total turnover of 2.314 billion shares worth N41.547 billion in 28,095 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.369 billion shares valued at N41.986 billion that exchanged hands previous week in 39,764 deals.
The Financial Services Industry (measured by volume) led the activity chart with 1.715 billion shares valued at N24.652 billion traded in 14,227 deals; contributing 74.09 per cent and 59.33 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 98.423 million shares worth N379.169 million in 1,176 deals, while the Consumer Goods Industry traded a turnover of 96.885 million shares worth N2.216 billion in 3,470 deals.
Trading in the top three equities; Access Holdings, United Bank for Africa (UBA) and Guaranty Trust Holding Company (GTCO) accounted for 844.596 million shares worth N16.302 billion in 5,493 deals, contributing 36.49 per cent and 39.24 per cent to the total equity turnover volume and value respectively. PZ 22.00 10.00
Eterna 21.00 9.95
LearnAfrca 3.21 9.93
Ikejahotel 3.99 9.92
Transcohot 23.40 9.91
