- NGX witnesses strong start to September with N123bn gain
The Nigerian equity market saw a turbulent August, with investors losing N36.04bn as the market faced multiple dips throughout the month, according to data obtained from the Nigerian Exchange Limited.
The market shed 0.05 per cent to N55.48trn at the end of August from N55.51trn at the end of July.
During the period under review, the all-share index and market capitalisation have experienced mixed performance.
In the first week, the index and market capitalisation appreciated by 0.87 per cent but reversed in the following with a 1.51 per cent dip.
The third week saw a further 1.16 per cent decline but rose marginally in the final week of the month by 0.63 per cent.
The losses were spread across various weeks, each contributing significantly to the overall -1.22 per cent decline at the end of last month.
The financial services industry dominated the activity charts across the four weeks, leading by volume and value.
In the first week, investors traded 2.68 billion shares valued at N49.02bn in 47,451 deals.
The second week saw a slightly reduced turnover, with 2.03 billion shares worth N42.16bn exchanged in 45,157 deals.
In the third week, trading activity surged with 5.64 billion shares worth N33.05bn traded in 42,006 deals, and in the final week, the turnover went down to 2.821 billion shares worth N53.04bn in 50,488 deals.
In August, investors traded 13.17 billion shares valued at N177.27bn in 185,102 deals.
Over the four weeks, the financial services industry dominated the market activities, trading a total of 10.19 billion shares valued at N91.34bn across 82,600 deals.
The oil and gas industry followed with a total of 974.685 million shares worth N33.723bn traded in 26,014 deals.
The ICT industry in the first week and the services industry in the subsequent weeks collectively recorded 516.275 million shares valued at N4.703bn in 12,775 deals, showing a moderate performance in comparison to the other sectors.
The last week of the month ended with 56 equities appreciated, 26 equities depreciated and 69 equities remaining unchanged.
In terms of price gains, at the end of the week, Oando emerged as a top performer, with its share price rising by 60.71 per cent from N47.85 to N76.90.
On the other hand, BUA Foods and Academy Press were among the notable decliners. BUA Foods’ share price fell from N379 to N373.50 after a dividend payout, while Academy Press’s share price dropped from N3.02 to N2.92 after its dividend payout.
According to Afrinvest, the global equities market also faced volatility in August, influenced by shifting sentiment towards big-tech stocks, recession fears in the United States, and an unexpected 0.25 per cent rate hike by the Bank of Japan, which led to significant selloffs in the first half of the month.
However, the MSCI World Equity Index showed resilience, advancing by 1.8 per cent in the second half of the month, marking its fourth consecutive month of gains.
“In August, performance in the global equities market was topsy-turvy as sentiment shifts on big-tech stocks, recession fears in the US, and an unexpected Bank of Japan rate hike (+0.25 per cent ) sparked major selloffs in the first half of the month. However, the MSCI World Equity index showed resilience in the second half, advancing 1.8 per cent for the fourth consecutive month,” the security firm stated.
NGX witnesses strong start to September with N123bn gain
Meanwhile, beginning the trading week, the Nigerian equities market opened September on a strong note, with the All-Share Index edging up by 0.22 percent to close at 96,793.95 points.
Despite a tight contest between the bulls and bears, with 29 stocks declining and 28 advancing, the market managed to close in positive territory.
Investors were rewarded with a portfolio gain of N123 billion, marking a 0.22 percent increase in the market capitalization of listed equities, which reached N55.60 trillion.
Driving the market’s positive momentum were notable performances from stocks such as OANDO (+9.95%), IMG (+9.85%), ETRANZACT (+9.80%), CONOIL (+9.72%), and UPL (+9.13%), which emerged as the top gainers of the day.
Conversely, the decliners were led by LIVESTOCK (-10.00%), RTBRISCOE (-9.86%), CORNERST (-9.63%), DAARCOMM (-9.59%), and WAPIC (-9.41%), all of which recorded significant share price drops.
Sectoral performance painted a mostly positive picture. The Banking, Oil/Gas, and Industrial Goods indices posted gains of 1.09 percent, 1.74 percent, and 0.05 percent, respectively, underscoring investor confidence in these sectors. However, the Insurance and Consumer Goods sectors lagged, posting losses of 2.20 percent and 0.35 percent, respectively.
Trading activity on the Exchange was somewhat subdued, with total traded volume and value dipping by 13.21 percent and 65.05 percent to 498.12 million units and N11.04 billion, respectively.
Nonetheless, the number of deals rose modestly by 3.10 percent to 13,149 deals. UBA was the most actively traded stock in terms of volume, with 54.85 million units exchanged across 940 transactions, while OANDO dominated in traded value, contributing N3.20 billion to the day’s turnover.
In the money market, the Overnight NIBOR rose by 0.78 percent to 21.03 percent signalling system illiquidity. However, the 1-month, 3-month, and 6-month NIBOR fell by 0.88 percent, 0.88 percent, and 1.18 percent, respectively.
Key money market rates such as the Open Repo Rate (OPR) and Overnight Rate (O/N) surged to conclude at 21.68 percent and 22.30 percent, respectively.
In the Nigerian Interbank Treasury Bills market, the Nigerian Interbank Treasury Bills True Yield (NITTY) exhibited a mixed trend across maturities.
However, the secondary market for Nigerian Treasury Bills experienced positive trading activity, leading to a decline in the average yield by 0.03 percent to 19.05 percent.
At the bond market, the secondary market for FGN Bonds reflected a bullish sentiment, as the average yield fell by 18 basis points to close at 18.78 percent. In the Nigerian sovereign Eurobonds market, subdued investor sentiment across the yield curve pushed the average yield up by 0.03 percent, reaching 9.75 percent.
In the foreign exchange market, the Naira experienced a positive performance against the US dollar at the official market, appreciating by 0.80% to close at ₦1,585.77 per dollar. However, at the parallel market, the Naira saw further demand pressure as it depreciated by 0.31 percent to ₦1,625 per dollar.
