There is a bullish run in the Nigeria Exchange Limited, NGX. Investors in the capital market are waiting for the large flow of companies result for the financial year in 2023 to take more informed position.
As a result of the run in the capital market, the Nigerian Exchange limited created N1.12 trillion gain Week-on-Week for the investors last week.
According to the NGX market capitalization Analysis, it shows that the total value of investment on the Exchange closed at N57.158 trillion on Friday from N56.038 trillion the previous week.
According to the year to day (YtD) and month to date (MtD) trading activities was positive and total traded volume and value increased by 30.3% W/W and 63.4% W/W respectively. MtD, and YtD returns settled at 3.2% and 39.6%
The NGX All Share Index, ASI another major market indicator closed higher to 104,421.23 points from 102,401.88 points, thus rising by1.97% W/W. The surge in ASI was majorly contributed by the buying interest on Dangote Cement, which surged by 9.9% followed by BUA 4.9% to offset losses in Zenith Bank which dropped by 8.1%band UBA 8.2%.
Reacting to market performance, analysts at Cordros Research stated: “In the ensuing weeks, we expect the NGX to be flooded with corporate earnings releases as more companies publish 2023 full year numbers alongside dividend declarations. While this influx of results may stimulate buying activities on the bourse, we also anticipate potential profit-taking, especially on stocks that have seen notable price increases recently.”
In their comment, analysts at InvestData Consulting said: “We expect mixed sentiments and profit taking to continue on bargain hunting and reactions to earnings reports, as market players digest these numbers in the face of volatility and coming Monetary Policy Committee, MPC meeting, while pullback at this point will add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”