The rally on the Nigerian Trade Restricted entered its seventh day on Monday, leading to a each day achieve of N365bn and a compound achieve of N3.5tn from the rally which began on December 28, 2023.
On the shut of Monday’s buying and selling, the benchmark index of the trade, the All-Share Index had crossed the 80,000 mark to settle at 80,328.57 foundation factors. The Market capitalisation rose by 0.83 per cent to N43.957tn.
The amount of shares traded additionally rose by 33.33 per cent to 1,190,164,298 models valued at over N15.256bn which have been exchanged in 16,081 offers.
The most important movers of the day’s market have been the shares of Transcorp, Constancy Financial institution, Entry Holdings Plc, FCMB Group, and United Financial institution for Africa, which crossed N1tn in market cap on the again of elevated exercise in banking shares.
Market Breadth which is the measure of buyers’ sentiment remained optimistic and resulted in 54 gainers and 17 losers.
Analysts believed that the upward trajectory of the market signifies a considerable demand for Nigerian shares, setting the stage for the approaching reporting and dividend incomes season. Thus, the opening week of the New 12 months not solely witnessed exceptional market highs but in addition surpassed historic benchmarks.
Main the gainers’ chart have been the shares of Cornerstone Insurance coverage Plc, Cutix Plc, Julius Berger, LASACO, Omatek Plc, and Jaiz Financial institution, which gained 10 per cent in market worth to shut at N1.87, N2.75, N46.75, N2.42, N0.99 and N2.53 per unit respectively.
The losers embrace the shares of Daar Communications which misplaced 9.30 per cent to shut at N1.17, Eterna Oil which misplaced 8.79 per cent to shut at N15.05, Laptop Warehouse Group misplaced 7.05 per cent to shut at N8.30, PZ Cussons misplaced 6.90 per cent to shut at N27 per unit and Constancy Financial institution shares which have been one of many prime three shares throughout final week’s buying and selling misplaced 5.99 per cent to shut at N13.35 per unit.
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Commenting on the bullish run of the market, a monetary professional, Mind Essien, stated it won’t be a nasty factor to anticipate a market correction this 12 months.
Tracing the historic bullish run of the market, Essien stated, “The Nigerian Capital Market, Main and Secondary, extra notably the NGX, has had fairly an surprising however stellar 52-week run. Thus, considerations for the 2024 fiscal season are fairly legitimate contemplating that this run began way back to 2020. Cumulatively, inventory buying and selling alone has returned greater than 100 per cent in lower than half a decade for Nigerian and even some overseas buyers. Subsequently, it might be prudent to anticipate a market correction, notably of a really miserable variety, going into the brand new 12 months contemplating that many equities proper now, notably banking shares are, for my part, fairly overpriced to say the least.
“Nonetheless, contemplating the quantity of exercise nonetheless anticipated within the 12 months, with forthcoming new points, and listings from non-public corporations, alongside the projected NNPCL itemizing, and even perhaps Dangote Refinery, I consider the NGX nonetheless has some fuel within the tank but, and may supply buyers nearly the identical by way of returns because it did in 2023, if no more. These will nevertheless additionally rely, considerably, on the Tinubu Administration following by on price range guarantees and larger financial stimulus from FDIs and FPIs he and his group have labored so onerous to draw within the earlier 12 months.”
Making projections, the researchers at Cowry Asset Administration Restricted, stated that the market is poised for blended sentiment, “Doubtlessly influenced by profit-taking actions throughout the native market. Because the NGX-ASI approaches the brink of 80,000+, market individuals are anticipated to place themselves strategically and take appreciable benefit of the value corrections.”
The weekly market report added that the approaching Financial Coverage Committee assembly in January and the approaching earnings and reporting season are anticipated to be components shaping market dynamics within the close to time period.