The Nigerian stock market ended the first month of the year 2024 on a strong positive note as investors’ investment went up by N14.440 trillion.
Also, recovering from the previous two sessions’ losses, the domestic equities yesterday opened February on a positive note, as investors gained N902 billion on renewed buy interests in BUA Foods Plc and 52 others.
The All-Share Index (ASI) gained 1,647.79 points, representing a gain of 1.63 per cent to close at 102,802.25 points. Also, market capitalisation rose by N902 billion to close at N56.260 trillion.
Reviewing stock market activities in January, the basic indicators of the Nigerian Stock Exchange (NSE), All-Share Index gained 36.11 per cent to close on January 31, 2024 at 101,154.46 basis points, from 74,773.77 points at which it opened for the year. Market capitalisation for the period rose by N14.440 trillion to close at N55.358 trillion as at January 31, 2023 from N40.918 trillion.
The sectoral performance closed positive as at January 26, 2024. The NGX Industrial Goods recorded the highest rise during the month with a gain of 96.43 per cent. The NGX Premium Board index followed with a monthly gain of 49.71 per cent, while NGX Lotus II index rose by 38.18 per cent in the month of January.
NGX 30 index recorded a monthly gain of 38.08 per cent, while NGX Insurance index achieved 35.35 per cent monthly gain. Others are NGX Consumer Goods, NGX Pension, NX Oil & Gas and NGX Banking indices recorded a monthly gain of 30.33 per cent, 23.66 per cent, 23.03 per cent and 13.89 per cent, respectively.
Capital market analysts said that January was a great month as the Nigerian stock market started the year 2023 on a bullish note, driven by positive sentiment from corporate earnings expectations.
Reviewing market performance for January, the chief executive officer, Sofunix Investment and Communications, Olusola Oni said: “2024 started with strong interest from Pension Fund Administrators (PFAs), especially in the banks stocks and this triggered a rally.
“The valuation of banks is believed to be sustainable. The sector is said to be undervalued. There are whispers that banks’ capital base would go up significantly and their shares would not trade below N100 per unit.
By this assumption, there is a possibility of sustained upswing in the sector.”
Oni noted that, with their renewed interest in equity investment on NGX, investors should seek professional advice from stockbrokers on how to make informed decisions to enhance their life cycle cash flow.
The chief operating officer of InvestData Consulting Limited, Ambrose Omordion said, trading on the Nigerian Exchange started for the year on a bullish note, with indexes stock prices hitting new highs in the midst strong volatility, increasing economic headwinds and expectation of numbers such as the December Consumer Price Index and quarterly unaudited corporate earnings reports.
On market outlook for February, Omordion 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.”
Speaking with LEADERSHIP, vice president, Highcap securities Limited, David Adonri said the anticipation for end-of-the-year dividend distribution lifted the stock market in January 2024, saying “the performance of the stock market in January is driven by shareholders’ expectation for the end of the year earnings and distribution of dividends.”
Meanwhile, yesterday’s upturn was driven by price appreciation in large and medium capitalised stocks amongst which are; BUA Foods, Dangote Sugar Refinery, NASCON Allied Industries, Guaranty Trust Holding Company (GTCO) and Lafarge Africa.
As measured by market breadth, market sentiment was positive, as 53 stocks gained relative to 18 losers. Chams Holding Company, GTCO, Veritas Kapital Assurance and Caverton Offshore Support Group emerged the highest price gainer of 10 per cent each to close at N2.64, N40.70, 66 kobo and N1.87 respectively, per share. NASCON Allied Industries followed with a gain of 9.98 per cent to close at N67.75, while Zenith Bank advanced by 9.97 per cent to close at N38.60, per share.
On the other side, Deap Capital Management and Trust led others on the losers’ chart with 9.88 per cent to close at 73 kobo, per share. CWG followed with a decline of 9.87 per cent to close at N6.85, while R.T. Briscoe Nigeria shed 9.86 per cent to close at 64 kobo, per share.
University Press lost 9.76 per cent to close at N3.33, while McNichols depreciated by 9.43 per cent to close at N1.44, per share.
The total volume traded rose by 14.93 per cent to 861.005 million units, valued at N12.155 billion, and exchanged in 12,851 deals. Transactions in the shares of Universal Insurance led the activity with 113.758 million shares worth N42.514 million. Transnational Corporation (Transcorp) followed with account of 91.016 million shares valued at N1.156 billion, while Zenith Bank traded 74.317 million shares valued at N2.761 billion.
United Bank for Africa (UBA) traded 69.178 million shares worth N1.717 billion, while Veritas Kapital Assurance traded 58.739 million shares worth N35.954 million.
