Percy Onyeka
In light of the ongoing bull market in stocks, investors are eagerly awaiting the release of company results for the 2023 fiscal year in order to make better-informed investment decisions.
Meanwhile, investors saw a N1.12 trillion gain last week as a result of the bullish run in the Nigerian Exchange Limited, or NGX.
Analysts have noted that, even though the numbers released thus far have provided additional insights into market valuation and fundamental analysis as prices continue to fluctuate, the market is already anticipating the release of scorecards from major corporate names this month, especially more banks and blue-chip companies.
Analysis of trading last week showed that the NGX market capitalisation which shows the total value of investment on the Exchange closed at N57.158 trillion on Friday from N56.038 trillion the previous week.
The NGX All Share Index, ASI another major market indicator closed higher to 104,421.23 points from 102,401.88 points, thus rising by1.97% W/W. The surge in ASI was majorly contributed by the buying interest on Dangote Cement, which surged by 9.9% followed by BUA 4.9% to offset losses in Zenith Bank which dropped by 8.1%band UBA 8.2%.
Accordingly, the Month-to-Date, MtD, and Year-to-Date, YtD returns settled at 3.2% and 39.6%, respectively. Trading activity was positive, as total traded volume and value increased by 30.3% W/W and 63.4% W/W respectively.
Reacting to market performance, analysts at Cordros Research stated: “In the ensuing weeks, we expect the NGX to be flooded with corporate earnings releases as more companies publish 2023 full year numbers alongside dividend declarations. While this influx of results may stimulate buying activities on the bourse, we also anticipate potential profit-taking, especially on stocks that have seen notable price increases recently.”
In their comment, analysts at InvestData Consulting said: “We expect mixed sentiments and profit taking to continue on bargain hunting and reactions to earnings reports, as market players digest these numbers in the face of volatility and coming Monetary Policy Committee, MPC meeting, while pullback at this point will add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”
Techrectory with Agency Report
