Stock Market To Sustain Positive Sentiment

Analysts said, the Nigerian stock market is expected to close the first week of February positive as more companies release their corporate earnings, coupled with heightened investor anticipation for dividend announcements from early filers.

Investors maintained their optimistic outlook, buoyed by the influx of corporate earnings reports that showcased impressive numbers and raised expectations for attractive dividend payouts. This positive momentum underscored the resilience of the local bourse, even as global markets navigated shifting trends, particularly with the ongoing surge in artificial intelligence (AI)-driven investments.

Analysts Optimisms

Looking ahead to the week, Cowry Assets Management Limited said the bullish momentum in the market is expected to persist as more companies release their corporate earnings, coupled with heightened investor anticipation for dividend announcements from early filers.

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“The NGX currently finds itself in a “wait-and-see” phase, with increasing traded volumes signalling cautious optimism. Technical indicators such as candlestick formations and momentum tools offer mixed signals, presenting opportunities for astute traders who understand the art of buying low and selling high amid ongoing market volatility.

“For Cowry Research, as earnings season progresses, investors are encouraged to maintain a strategic approach by focusing on fundamentally strong stocks. With the right positioning, they stand to capitalise on the market’s upward trajectory while navigating intermittent bouts of profit-taking,” the company said.

Also, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion said, “We expect mixed sentiments to continue as players digest corporate numbers and  more earnings reports hit the market to reveal value and give insight of dividend expectation,  while rebalancing their portfolios amidst high inflation and earnings expectations. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.”

He noted that this is amid the volatility and pullbacks that add more strength to upside potential, saying that “investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”

Last Week’s Trading Activities

The All-Share Index advanced by 0.87 per cent week-on-week (W-o-W) to close at 104,496.12 points. Similarly, the market cap increased by 1.67 per cent or N1.064 trillion to the week at N64.709 trillion.

The difference in the two market indicators is as a result of the supplementary listings of ordinary shares by LASACO Assurance and FCMB Group, which provided additional support.

Sectoral performance reflected the prevailing optimism. Leading the pack was the NGX Consumer Goods Index, which surged by 4.01 per cent week-on-week. The NGX Banking index recorded a weekly gain of 2.54 per cent, while the NGX Commodity index posted a 1.78 per cent gain.

Also, the NGX Oil and Gas index inched up by 0.97 per cent for the week. On the flip side, the NGX Insurance index retreated by 2.86 W-o-W, while the NGX Industrial Goods index posted a weekly loss of 0.52 per cent.

The market breadth for the week was positive as 52 equities appreciated in price, 44 equities depreciated in price, while 54 equities remained unchanged. Chellarams led the gainers table by 60.44 per cent to close at N6.53, per share. Vitafoam Nigeria followed with a gain of 31.48 per cent to close at N31.95, while Beta Glass went up by 20.985 per cent to close to N71.50, per share.

On the other side, Veritas Kapital Assurance led the decliners table by 29.68 per cent to close at N1.09, per share. MRS Oil Nigeria followed with a loss of 18.96 per cent to close at N162.90, while NEIMETH International Pharmaceuticals declined by 14.52 per cent to close at N2.65, per share.

Overall, a total turnover of 3.245 billion shares worth N69.198 billion in 77,270 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.132 billion shares valued at N76.552 billion that exchanged hands prior week in 61,456 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.742 billion shares valued at N32.529 billion traded in 35,372 deals; contributing 53.69 per cent and 47.01 per cent to the total equity turnover volume and value respectively.

The Services industry followed with 748.205 million shares worth N1.560 billion in 5,469 deals, while the Oil and Gas Industry pulled a turnover of 264.682 million shares worth N16.786 billion in 10,515 deals.

Trading in the top three equities; Secure Electronic Technology, FBN Holdings (FBNH) and Japaul Gold and Ventures, (measured by volume) accounted for 998.467 million shares worth N6.604 billion in 4,426 deals, contributing 30.77 per cent and 9.54 per cent to the total equity turnover volume and value respectively.