NGX gains as earnings season tempers sell-side fury

The equities segment of the Nigerian Exchange (NGX) recorded about N521 billion in gains in the local bourse over improved sentiments, stockbrokers’ records show.

The local bourse was upbeat, and closed positively on all four trading sessions amidst corporate earnings releases, halting sell-side investors’ persistent shares selling.

Nigerian bourse market movers were the most popular among stocks that attracted buying interest from investors, lifting key indices upward and reversing negative year-to-date returns.

Stockbrokers at Cowry Asset Management Limited said the major counters that rallied delivered on enhanced liquidity, remarkable corporate earnings and actions in the form of dividend announcements and payments.

BUA Foods, Airtel Africa and MTN Nigeria, the stocks in the trillion naira capitalisation gang were key supporters of the weekly gain reported by the exchange.

Trading data show that BUAFOODS beat the market tempo with 11.6% share price appreciation. In the same light, telecom stock was investors’ toast, driving their respective market prices higher.

Trading record show that interest in telecom companies’ shares drove Ticker: AIRTELAFRI market price upward by 4.3% and Ticker: MTNN also gained 2.1% above its opening price. Thus, the All-Share Index advanced by 2.0% week on week to close at 52,403.51 points.

The positive trajectory pushed year-to-date gain to +2.2% while activity levels were upbeat, as traded volume and value increased by 257.9% and 277.8%, respectively.

Top-gaining securities for the week were Honeywell Flour, Cadbury Nigeria, and Chams Plc. Market data show that Ticker: HONEYFLOUR gained 35% in the week followed by CADBURY which recorded 32% share price appreciation.

Positive price movement on CHAMS pushed share up 17%. Meanwhile, the laggards this week were NB which lost 11%, OKOMUOIL was down by 7%, and NESTLE dipped by 3%.

Data show that performance across sectors was largely bullish, following gains in the Consumer Goods (+5.2%), Insurance (+2.0%), Banking (+1.7%), and Industrial Goods (+0.2%) indices amid a decline in the Oil and Gas (-0.1%) index.

Overall, the equities market capitalisation inched higher by N570.52 billion to N28.53 trillion while the market year-to-date return increased to 2.25%.