NGX Index records new high amid mixed sentiments
…As investors rake N1.8trn in 4 days
By Peter Egwuatu
The Nigerian equities market extended its positive momentum amid mixed sentiments, as the Nigerian Exchange Limited, NGX All Share Index, ASI recorded new high of 114,595.72 points last week Thursday.
The ASI closed higher in all four trading sessions and kicking off the month of June on a strong note from 111.742.01 points posted the previous week.
Investors continued repositioning their portfolios ahead of the earnings reporting season, while others took profit following the long holidays to mark the Muslim festival of Id el Kabir in the midst of the benchmark NGX ASI making a new historic all-time high in divergence with money flow index looking down.
Specifically, the uptrend in the Index was buoyed by buying interests in Oando, which went up by 25.8%, followed by , First Holdco 17.6% , MTN Nigeria 14.0% , followed by Dangote GTCO 4.6% and Dangote Cement gaining 2.3%.
As a result, the Year-to-Date, YtD returns settled higher at 11.3%. Meanwhile, trading volume and value declined by 15.3% and 36.1% Week on Week, W/W, respectively, mostly reflecting the holiday-shortened week.
Meanwhile, investors gained over N1.813 trillion from their investment in the NGX, as market capitalisation, which represents the total value of listed shares on the Exchange closed at N72.275 trillion last week from N70.462 trillion the previous week.
On sectoral performance last week, it was broadly positive, as the Banking Index went up by 4.7%, Insurance Index 3.4%, Oil & Gas Index 3.3%, Consumer Goods Index 2.3% and Industrial Goods Index 1.2%.
Reacting to market outlook, analysts at Cordros Research stated: “Looking ahead, we expect market direction to remain driven by company and sector-specific developments, in the absence of broader catalysts to sustain momentum”.
Also commenting on market outlook analysts at Investdata Consulting Limited stated: “On market outlook, analysts at Investdata Consulting Limited, said : “We expect mixed sentiments at historic all-time high on profit taking and bargain hunting to continue as investors buy into value in expectation of audited corporate earnings of Learn Africa, University Press, Redstar Express and others in the midst of portfolio reshuffling, even as few audited accounts are expected to hit the market with dividend announcement.
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”.
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