•Gain over N1trn in 5 days
CHIGOZIE AMADI
The stock market sentiment remained mixed last week as more corporate earnings reports hit the market with impressive numbers, spiking buying sentiments, even as some results were below expectation resulting in some profit taking.
However, investors’ attraction to the shares of Nestle, Stanbic IBTC and Nigerian Breweries, NB, boosted market activities last week, as they earned over N1 trillion through the week. Specifically, the Nigerian Exchange Limited, NGX, market capitalisation, which represents the total value of listed equities, rose to N64.71 trillion on Friday, up from N63.65 trillion previous week.
Similarly, the NGX All Share Index, ASI another stock market performance indicator grew by 0.9% Week on Week, W/W to close last Friday at 104,496.12 bases points from 103,598.30 points the previous week.
Market analysts noted that investors reacted based on some positive corporate earnings reports for the fourth quarter, Q4’24 as well as divided declaration, while attributing the growth in ASI to gains recorded by NB , which went up by 15.5%, Nestle rose by 11.4% followed Stanbic IBTC 8.2% among others.
Meanwhile, the Year-to-Date, YtD return settled at 1.6%. However, trading activity was mixed as the total trading volume advanced by 6.3% W/W, while trading value declined by 8.0% W/.
Sectoral performance was mixed as the Consumer Goods Index went up by 4.0, Banking Index 2.5% and Oil & Gas Index 1.0%), while the Insurance Index dropped by -2.9% and Industrial Goods Index -0.5%.
Commenting on market outlook, analysts at Cordros Research stated: “Looking ahead, market performance is expected to be influenced by the ongoing earnings season, with sentiment likely remaining positive for companies delivering strong earnings and attractive dividends”.
Commenting as well, analysts at InvestData Consulting stated: “We expect mixed sentiments to continue as players digest corporate numbers and more earnings reports hits the market to reveal value and give insight of dividend expectation, while rebalancing their portfolios midst high inflation and earnings expectations. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.
This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically”.
