Expectations high ahead of earnings releases after mixed outing last week
NGX investors took profit of N292.4bn to begin July month
AT THE START OF THE FIRST TRAD ING week in the second half of the year, the NGX ASI sustained a positive performance for the week, closing in the green in three out of five sessions and flat in the remaining two sessions. Consequently, market investors, who made a profit of N292.4 billion, continued to favour the consumer goods and insurance sectors during the week.
Looking ahead at trading this week, analysts predict a mixed session and slight profit-taking to start off coupled with weak turnover as investors continue to wait on the sidelines for halfyear earnings results. However, they envisage market performance to be dictated by the performance of the H1:2021 earnings results.
Last week, the performance of the Nigerian equities market was mixed as the benchmark index advanced 1.5 per cent week on week to settle at 38,212.01 points while market year to date loss moderated to -5.1 per cent. Market capitalisation advanced in value to close at N19.91 trillion.
Similarly, the level of trading activity improved as average volume and value rose 0.2 per cent and 36.8 per cent respectively to 209.2 million units and N2.0 billion. The top tradback ed stocks by volume were Guaranty Trust Company (73.9m), First Bank Holding (43.6m), and Mutual Benefits Assurance (42.4m) while MTN Nigeria (N3.4bn), Zenith Bank (N972.9m) and Nestle plc (N931.7m) were the top traded stocks by value.
In terms of sector performance, 4 of 6 indices advanced and led the consumer goods index on the league of top gainers this week, advancing 5.1 per cent from the previous week’s performance on the of buying interest in Vitafoam (+12.3%), Nestle Plc (+10.0%) and Nascon Plc (+9.8%). In the same vein, the industrial goods and insurance indices rose 2.1 per cent and 2.0 per cent week on week respectively as Cutix Plc (+8.3%), Dangote Cement (+4.0%), Linkage Assurance (+30.8%) and NEM Insurance (+4.2%) closed in the green. Price appreciation in Wema Bank (+23.3%), Union Bank of Nigeria (+4.7%) and FCMB (+3.3%) drove the banking index higher by 1.3 per cent from the prior week.
On the flip side, the oil & gas and ICT indices fell 1.0 per cent and 0.3 per cent week on week, respectively, due to price depreciation in Conoil Plc (-4.3%), Eterna Plc (-1.3%) and Airtel Africa (-1.5%).
Also, investor sentiment strengthened to 1.8x from 0.9x in the previous week as 41 stocks advanced against 23 that declined. The topperforming stocks for the week were Ikeja Hotel (+60.0%), Linkage Assurance (+30.8%) and Wema Bank (+23.3%) while BOC Gas (-19.0%), Regency Alliance Insurance (-14.3%) and Royal Exchange (-12.7%) were the laggards.
Elsewhere at the NGX 30 by the close of last week, the Index increased by 1.89 per cent week on week to close at 1,607.99 points as against 1,578.17 points the previous week. Nascon and Dangote Cement were the key gainers, while FCMB and Unilever were the key losers at the last trading session.