Investors’ wealth rises by N394b amid anticipation of H1 earnings

Anticipations of positive half-year earnings (H1) and interim dividend declaration have continued to spur positive sentiments in the equities sector of the Nigerian Exchange Limited (NGX) as more highly capitalised stocks join the league of gainers, causing market capitalisation to rise by N394 billion.

At the close of transactions yesterday, market capitalisation of listed equities increased by N394 billion to N35.932 trillion from N35.538 trillion reported the previous day.

The NGX All Share Index also appreciated by 720.53 basis points to 65988.81 points from 65268.28 points traded on Monday. The upturn was impacted by price appreciation in large and medium capitalised stocks amongst which are Seplat, MTNN, Geregu, NGX Group, Sky Aviation, Unilever, Sovereign Insurance, Dangote sugar and Eternaoil.

As measured by market breadth, market sentiment was positive as 32 stocks gained relative to 30 losers.
FTNCocoa and Ikeja Hotel led the gainers’ chart, adding 10 per cent each to close at N2.42 kobo and N2.97 kobo respectively while Seplat Energy followed with a gain of 9.99 per cent to N1539.70 kobo, Skyways Aviation Handling appreciated by 9.83 per cent to close at N19.55 kobo, Japaul Gold added 9.78 per cent to close at N1.01 kobo. Unilever increased by 9.72 per cent to close at N17.50 kobo while NGX Group added 9.61 per cent to close at N27.95 kobo.

Lasaco appreciated by 7.95 per cent to close at N1.90 kobo. Veritas Kapital increased by 7.41 per cent to close at 29 kobo. Daarcomm appreciated by 6.25 per cent to close at 34 kobo. MTN Nigeria rose by 5.52 per cent to close at N284.90 kobo. Sovereign insurance also garnered 4.76 per cent to close at N66 kobo.

However, Learn Africa and Conoil topped the losers’ chart, declining by 10 per cent to close at N3.69 kobo and N101.25 kobo respectively. JohnHolt trailed with a loss of 9.96 per cent to close at N2.44 kobo.
Multiverse was down by 9.88 per cent to close at N3.01 kobo while Cornerstone Insurance shed 8.33 kobo to close at 8.33 per cent to close at 88 kobo. Chams depreciated by 7.89 per cent to close at N1.05 kobo.

Courtville lost 6.25 kobo to close at 60 kobo. Custodian and Allied insurance dropped 4.67 per cent to close at N7.15 kobo. Cutix also depreciated by 3.78 per cent to close at N2.67 kobo.

“Chief Research Officer of Investdata Consulting, Ambrose Omordion said: “The strong positive movement continued, despite the seemingly mixed performance witnessed during the trading session as profit-taking hit some banking stocks in the face of portfolio repositioning, changing economic fundamentals and concerns.

“The buying pressure has supported the flow of funds into the equities space as a sign that the bulls are in charge on the exchange. This is against the backdrop of an environment where reform policies are driving hyperinflationary pressure in the face of an already heated economy and headwinds ranging from rising inflation, high-interest rate regime and insecurity, among others.”

The volume of trades during the day declined by 277.98 million, representing 33.43 per cent as investors traded 553.52 million shares valued at N7.42 billion in 8313 deals against 831.5 million shares worth N12.94 billion in 9768 deals.

Transactions in the shares of Japaul Gold led activities with 72.493 million shares valued at N73.208 million in 178 deals, GTCO Plc followed with an account of 45.094 million shares worth N1.696 billion in 623 deals.

United Bank for Africa traded 43.212 million shares valued at N639.77 million in 488 deals. Zenith Bank traded 36.306 million shares costing N1.268 billion in 462 deals while Wapic Insurance exchanged 32.205 million shares valued at N18.837 million in 82 deals.