• Monday, July 15, 2024
businessday logo

BusinessDay

Nigeria stocks gain N1.81trn in July

Stock market extends rally by 0.53%

Nigeria’s listed equities garnered about N1.81trillion in the month ended July 31. In the month under review, the market increased by 5.53percent. The market had opened July with All Share Index (ASI) and equities capitalisation at 60,968.27 points and N33.197 trillion.

The Nigerian Exchange Limited (NGX) All-Share Index and equities market capitalisation depreciated by 1.10percent on Monday July 31 to close at 64,337.52 points and N35.011trillion respectively as against preceding day’s 65,056.39 points and N35.403 trillion.

As the market opened the new trading week in red, investors lost N392billion on Monday. The market’s negative take-off to new week was driven by stocks like ETI, Dangote Sugar Refinery, NPF Microfinance Bank, Livestock Feeds, and Caverton Offshore Support Group.

ETI moved down from N17 to N15.30, losing N1.70 or 10percent. Dangote Sugar Refinery dropped from N30 to N27, down by N3 or 10percent.

Read also: FBNH, Transcorp, others cause stock market’s first dip this week

The recorded dip pushed down the positive return year-to-date (YtD) to 25.53percent. Investors in 9,788 deals exchanged 673,424,564 shares valued at N6.474billion.

Abbey Mortgage Bank, Fidelity Bank, Union Bank, FCMB Group and Universal Insurance were most traded stocks.

In their July 31 commentary, Meristem research analysts said “we project that the tickers in the banking sector will be instrumental in spurring buying activities in the local bourse.”

“We highlight the broad positive H1:2023 earnings results in the sector as a primary driver for the expected upbeat mood. Thus, we anticipate this to spillover to other sectors.

“In addition, profit taking on some stocks last week placed them at attractive entry prices for investors seeking bargain hunting opportunities. As such, we do not expect a drastic rotation of funds out of the equities market.

“However, we do not rule out the possibility of further selloffs on tickers (especially the consumer goods) due to unsatisfactory H1:2023 performance impacted by inflationary pressures and FX revaluation losses,” the report said.

“Overall, we anticipate the overriding sentiment in the market to be positive during the week,” Meristem analysts added.