The bulls continued their reign on Tuesday July 25 as buy-side activities on the bourse favoured stocks like Seplat, Unilever, NGX Group, FTN Cocoa, Ikeja Hotel and Sky Aviation.
Another session of positive close by +1.11percent or N391billion has pushed the market’s return year-to-date (YtD) to +28.76percent. This month, the market has increased by 8.23 percent.
The Nigerian Exchange Limited (NGX) All-Share Index and equities market capitalisation increased further from preceding day’s lows of 65,268.28 points and N35.539trillion respectively to 65,991 points and N35.930trillion.
“We highlight that the positive mood in the market is still in full swing. Thus, we anticipate bargain hunting activities premised on the broad expectation of positive corporate earnings releases for half-year (H1) 2023.
“We do not expect a significant flow of funds away from the equities market. However, we do not rule out profit taking activities on tickers that have appreciated significantly. Overall, we project that the market will close up this week,” according to Meristem research analysts in their July 24 note to investors.
Ikeja Hotel led the advancers after its share price rose from N2.70 to N2.97, up by 10percent. FTN Cocoa also moved up from N2.20 to N2.42, up by 10percent. Seplat Energy also increased from N1,399.80 to N1,539.70, up by 10percent.
Sky Aviation rose from N17.80 to N19.55, up by 9.8percent. Unilever rose from a low of N15.95 to N17.50, up by 9.7percent, while NGX Group rallied from N25.50 to N27.95, up by 9.6percent.
“We expect increased activities on the floor of the exchange, in terms of volume and value traded. This expectation is hinged on the prevailing investors’ sentiment toward listed corporates, particularly the banks, which have been positive since the new Federal Government administration took charge, on the back of the favourable policies that were introduced (particularly positive for foreign investors).
“The depressed interest rate environment is also a strong basis for our expectations. For equity-vested stakeholders, taking positions this week is still in order, in anticipation of the second quarter (Q2)/half year (H1) 2023 earnings season,” said Lagos-based research analysts at United Capital.