The trading activities on the Nigerian stock market witnessed some turbulent sessions during the week ended February 2, 2024 as profit-taking and portfolio adjustments by fund managers impacted stock prices earlier in the week.
However, the market rebounded by the weekend, driven by high volatility, corporate earnings releases, and anticipation of the dividend season.
Investors’ expression of interest in DANGCEM and BUACEM drove market performance for the week, leading to the Industry Goods index outperforming other sectoral index recording a 6.36% week-on-week gain.
Summarily, the market closed on a positive note, with the NGX benchmark index making a robust 1.97 percent week-on-week advancement, closing at 104,421.23 points.
Analysts insist that as the market delves into the peak of the earnings reporting season, sentiments and fundamental earnings factors are steering momentum and liquidity levels.
In this regard, it was observed during the week under review that market players reacted strongly to early filers, witnessing heightened trading volumes and positive market breadth.
Consequently, the resurgence of buying interest, particularly in banking stocks, propelled the market beyond the psychological 104,000-point threshold. Year-to-date, the index recorded an impressive return of 39.7 percent, contributing to a 2 percent weekly increase in the market capitalization of listed equities to N57 trillion, leading to investor gains amounting to N1.12 trillion.
Sectoral performance for the week displayed a mixed picture, with three out of the five sectors experiencing declines. Banking and insurance indexes retreated by 4.52 percent and 4.07 percent, respectively, primarily due to price drops in GTCO, ZENITH, ROYALEX, and NEM.
Conversely, the Industrial index outperformed, recording a 6.36 percent week-on-week gain, driven by increased prices and buying interest in DANGCEM and BUACEM.
The Consumer Goods Index also ended the week positively, rising by 1.30 percent, fueled by upward price movements in MEYER and MCNICHOLS.
However, the Oil & Gas index witnessed a dip due to waning sentiment in ETERNA, resulting in a 2.47 percent decline.
Despite the overall positive performance, market participation levels were robust, reflecting positive market breadth.
Total traded volume increased by 30.56 percent to 3.89 billion units, with the number of trades rising by 1.70 percent to 69,117 deals. The weekly traded value saw a notable uptick, surging by 64.40 percent to N95.15 billion.
Top-performing stocks at the close of the week included TRIPPLE GEE, MEYER, CORNERST, JULI, and GEREGU, which gained 42 percent, 21 percent, 20 percent, 19 percent and 15 percent respectively. Conversely, stocks like VERITASKAP, DAARCOMM, ETERNA, CADBURY, and MAYBAKER experienced 23 percent, 22 percent, 20 percent, 13 percent and 16 percent declines in their share prices, respectively.
New listing
During the week under review, the Federal Government of Nigeria Savings Bonds January 2024 was listed.
The Bond issue under the Symbol Name FGNSB JAN 2024 was listed on Nigerian Exchange Limited on Tuesday, January 30, 2024.
Similarly, Ellah Lakes Plc listed the proceeds of its Rights Issue of 1,000,000,000 Ordinary Shares of 50 Kobo each at N2.90 Kobo per Share on the Basis of One (1) New Ordinary Share for Every Two (2) Ordinary Shares Held as at the Close of Business on Friday, 10 February 2023 on Nigerian Exchange Limited.
The NGX weekly report stated that, additional 753,786,788 ordinary shares of 50 Kobo each per share of Ellah Lakes Plc (Ellah Lakes or the Company) were on Wednesday, 31 January 2024, listed on the Daily Official List of Nigerian Exchange Limited (NGX).
The additional shares listed on NGX arose from Ellah Lakes’ Rights Issue of 1,000,000,000 ordinary shares of 50 Kobo each at N2.90 per share.
With this listing of the additional 753,786,788 ordinary shares, the total issued and fully paid up shares of Ellah Lakes has now increased from 2,000,000,000 to 2,753,786,788 ordinary shares of 50 kobo each.
Chapel Hill Denham Management Limited also listed its Series 9 Nigeria Infrastructure Debt Fund of 106,350,000 Units of N100.00 each at N108.89 each under the N200 Billion Issuance Programme.
Announcing the administration, the NGX weekly report stated, “Trading License Holders are hereby notified that additional listing of 106,350,000 units of N100 each at N108.89 each of Chapel Hill Denham Management Limited’s Nigeria Infrastructure Debt Fund under the N200 Billion Issuance Program were on Friday, 2 February 2024 listed on the Daily Official List of Nigerian Exchange Limited (NGX).”
With this listing of the additional 106,350,000 ordinary shares, the total issued and fully paid up shares of Chapel Hill Denham Management Limited has now increased from 853,694,759 to 960,044,759 ordinary shares of N100 each.
