Investors take position ahead H1’23 results as stock market gains N110bn

Forum 10 months ago

Investors take position ahead H1’23 results as stock market gains N110bn

Nigerian stock market have begun to take position on their investment ahead of the half year, H1’23, corporate results, in which some companies are expected to propose interim dividend.

Consequently, the stock market recorded a marginal weekly gain of N110 billion as market capitalisation closed last Friday at N32.236 trillion up from N32.126 trillion the previous week. Similarly, another stock market gauge, Nigerian Exchange Limited, NGX, All Share Index, ASI managed to rise marginally by 0.3% to close at 59,206.63 points from 58,000.96 points.

The bargain hunting in BUA Cement led to increase in the share price by 4.7% followed by Dangote Cement which went up by 1.2%, while First Bank Nigeria Holding, FBNH, garnered 9.5%.

Meanwhile the month-to-date and year-to-date returns for the Index increased to +6.2% and +15.5%, respectively. On activity levels, the trading volume and value decreased by 21.2% Week on Week, w/w, and 32.5% w/w, respectively.

In the meantime, sectoral performance was broadly positive as the Insurance Index went up 3.2% followed by Oil and Gas Index 3.1%. Industrial Goods Index gained 2.6% while Banking Index was up by 1.1% and Consumer Goods Index increased by 0.2%.

Reacting on the market performance, analysts at Cordos Research said: “In the week ahead, we expect investors to continue to hunt bargains in search of alpha, amid early positioning ahead of the HY earnings season. However, we do not rule out the possibility of profit-taking activities. As a result, we think the local bourse will likely exhibit a choppy pattern. Therefore, we advise investors to take positions in only fundamentally justified stocks.”

In their reaction, analysts at Cowry Asset stated:”In the coming week, we anticipate the market to maintain its mixed sentiment on continued profit-taking as investors reshuffle their portfolios ahead of the Q2 window activities and reporting season. However, we continue to advise investors to target fundamentally sound companies and defensive stocks to protect their portfolios post-dividend adjustments.”