Stocks post weekly gain of N 290 billion, market cap increases
The Nigerian stock market gained 290 billion naira at the end of trading last week as the Nigerian Exchange Limited’s All-Share index rose 1.48 percent to 38,212.01 basis points.
Market cap rose to N19.92tn on Friday from N19.63tn the week before.
According to Cordros Research, buying interests in NestlÃ© Nigeria Plc and hunting for bargains in Okomu Oil Plc, Dangote Cement Plc, Access Bank Plc and Dangote Sugar Refinery Plc drove the weekly gain to a monthly return of 0.80 %.
A total of 1.02 billion shares valued at 14.14 billion naira were traded in 17,565 transactions last week, compared to 1.01 billion shares worth 10.33 billion naira traded in 17,165 transactions the previous week.
Consumer goods led sector gains, registering an increase of 5.10 percent. It was followed by the industrial goods sector, which gained 2.10 percent, while the insurance and banking sectors rose 2.0 percent and 1.30 percent respectively.
As trading closed on the NGX floor on Friday, 24 companies saw their stock prices rise, while 16 companies posted losses.
Nascon Allied Insurance leads the winners with 9.76 percent to close at N 15.75 per share. It was followed by Ikeja Hotel Plc with an increase of 9.59 percent to close at N 1.60 per share.
The other big winners were Berger Paints Plc, Academy Press Plc and Tripple Gee and Company Plc.
University Press Plc led the losers as its stock price fell 8.98 percent to 1.52 N.
Linkage Assurance Plc was next with a loss of 7.61 percent ending the day at N 0.85 per share. The other big losers were FCMB Group, LASACO Assurance and FTN Cocoa Processors.
In its weekly equity market report, Cordros Capital said, âWith the H1-21 earnings season on the horizon, we believe investors will be looking for clues to the sustainability of decent corporate earnings released for Q1- 21.
“However, we expect mixed market performance over the coming week as the bargain hunt on dividend-paying stocks will be offset by intermittent profit-taking activity.”
Analysts advised investors to take positions only in fundamentally justified stocks, as the unimpressive macroeconomic story remained a significant headwind for corporate earnings.
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