Investors gain N34bn as Nigeria’s stock market inched up in week

INVESTORS gained N34 billion last week on the floor of the Nigerian Exchange Limited (NGX) as more companies released their full-year 2022 and first quarter 2023 financial results.

The gain, according to analysts, was buoyed by dividends declared by companies, which equally spurred the gain recorded in the week before it. Before then, the stock market had posted six weeks of consecutive loss, The ICIR reported.

At the close of last week’s trading session, the benchmark index, which is the All-Share Index (ASI), rose by 0.12 per cent to 52,465.31 basis points (bps) as demand for financial stocks and others drove the upward trend.

The market capitalisation also rose by 0.12 per cent to N28.568 trillion on Friday, May 5, from N28.534 trillion it opened with on Tuesday, May 2 as the market traded for four trading sessions.

On sectoral performance, the banking index rose highest by 5.23 per cent to close at 460.96bps. This was closely followed by the oil and gas index, which inched up by 5.08 per cent to 527.76bps.

While the insurance index recorded a 3.08 per cent rise to 190.06bps, the consumer goods index minimally increased by 0.02 per cent to 736.31bps, even as the industrial index also rose slightly by 0.09 per cent to 2,449.39bps.

The shares of CWG, Academy Press, Wema Bank and Ardova topped trading in the week under review. CWG share price rose by 25.71 per cent to close at N1.32; Academy Press saw a 20 per cent rise to N1.74; and Wema Bank appreciated by 16.58 per cent to N4.43; while Ardova gained 14.63 per cent N19.20.

However, the share price of Transnational Corporation (Transcorp) topped the list of the companies whose share prices fell significantly. Transcorp share price declined by 30.96 per cent to N1.94.

The company has  caused a stir on the floor of the NGX in the last two weeks of April, after its share price rose as high as N3.12, caused by the buying spree and intended mop-up of the company’s stock by two billionaire friends, Femi Otedola and Tony Elumelu.

At the close of the week’s trading session, a total turnover of 2.973 billion shares worth N22.828 billion in 23,765 deals was traded in the week by investors, in contrast to a total of 14.029 billion shares valued at N59.007 billion that exchanged hands in 24,048 deals in the week before it.

    Measured by volume, the financial services industry led the activity chart with 1.458 billion shares valued at N14.082 billion traded in 13,115 deals, and contributed 49.04 per cent and 61.69 per cent to the total equity turnover volume and value respectively.

    The conglomerates industry followed with 1.254 billion shares worth N3.123 billion in 1,662 deals, while the consumer goods industry returned a turnover of 71.425 million shares worth N1.468 billion in 3,177 deals.

    Transcorp, Access Holdings and Fidelity Bank topped, measured by volume, the stock market trading and accounted for 2.074 billion shares worth N11.297 billion in 5,966 deals, and contributed 69.76 per cent and 49.49 per cent to the total equity turnover volume and value respectively.

    “In the week to come, we expect to see mixed sentiment on profit-taking and reaction to dividend-earning season, as more first quarter earnings hit the market, while investors target sound defensive stocks to protect their portfolios post-markdown dates,” analysts at Cowry Asset Management said.

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