Investors gain N34bn as the Nigerian stock market moved higher this week

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

Earnings, according to analysts, were supported by dividends announced by companies, which also boosted earnings from the previous week. Before then, the stock market had posted losses for six straight weeks, The ICIR reported.

At the end of last week’s trading session, the reference index, the All-Share Index (ASI), rose 0.12 percent to 52,465.31 basis points (bps) as demand for financial stocks, among other things, drove the uptrend.

The market cap also rose 0.12 percent to N28.568 trillion on Friday, May 5, from N28.534 trillion it opened on Tuesday, May 2 when the market traded through four trading sessions.

In terms of sector performance, the banking index rose the highest by 5.23 percent to 460.96 basis points. This was closely followed by the oil and gas index, which rose 5.08 percent to 527.76 basis points.

While the insurance index rose 3.08 percent to 190.06 basis points, the consumer goods index rose at least 0.02 percent to 736.31 basis points, just as the industrial index also rose slightly by 0.09 percent to 2,449. 39 basis points.

Shares of CWG, Academy Press, Wema Bank and Ardova dominated trading last week. CWG’s share price rose 25.71 percent to close at N1.32; Academy Press saw a 20 percent increase to N1.74; and Wema Bank rose 16.58 percent to N4.43; while Ardova won 14.63 percent N19.20.

However, the stock price of Transnational Corporation (Transcorp) topped the list of companies whose stock prices fell significantly. Transcorp’s share price fell 30.96 percent to N1.94.

The company caused a stir on the floor of the NGX in the last two weeks of April after its share price rose to N3.12, triggered by the buying spree and the planned clearing of the company’s stock by two billionaire friends. , Femi Otedola and Tony Elumelu.

At the end of the week’s trading session, a total turnover of 2.973 billion shares worth N22.828 billion in 23,765 deals in the week was traded by investors as opposed to a total of 14.029 billion shares worth N59.007 billion which changed hands in 24,048 deals in the previous week.

Measured by volume, the financial services sector led the activity chart with 1.458 billion shares worth N14.082 billion traded in 13,115 deals, contributing 49.04 percent and 61.69 percent respectively to the total volume and value of share sales.

The conglomerate industry followed with 1.254 billion shares worth N3.123 billion in 1,662 deals, while the consumer goods industry generated sales of 71.425 million shares worth N1.468 billion in 3177 deals.

Transcorp, Access Holdings and Fidelity Bank led exchange trading by volume, accounting for 2.074 billion shares worth N11.297 billion in 5,966 deals, contributing 69.76 percent and 49.49 percent respectively to the total volume and value of share sales.

Going into the week, we expect mixed sentiment on profit-taking and dividend season reactions as more first-quarter earnings hit the market as investors turn to healthy defensive stocks to protect their portfolios beyond the write-down dates, analysts said. Cowry Asset Management.