By Peter Egwuatu
The seeming recovery and buying sentiment on the Nigerian Exchange Limited, NGX resurfaced last week as the deadline for submission of the 2024 audited financial statements for companies with December year-end gets closer.
Consequently, the major benchmark market indicator, NGX All Share Index, ASI, grew by 0.7% to close last Friday, at 105, 660.64 points from 104,962.96 points the previous day.
Similarly, another major indicator, market capitalisation, which measures the total value of securities listed on the NGX grew by over N438 billion to close at N66.257 trillion from N65.819 trillion the previous week.
Market participants attributed the uptrend of the market to the improved momentum and earnings expectations from companies that would soon release their results.
They also added that these are happening amid the usual end-of-the quarter window dressing by market operators and fund managers which kicks off ahead of the statutory deadline for submission of the 2024 audited financial statements for companies with December year-end.
Meanwhile, further analysis of trading last week showed that the market’s positive performance was driven by gains in GTCO, which gained 18.2% and Zenith Bank 3.1% following the release of their respective full-year 2024 audited financial statements and accompanying dividend announcements. Consequently, Month-to-Date, MtD and Year-to-Date, YtD returns settled at -2.0% and +2.7%, respectively.
Trading activity was robust, as both volume and value increased by 161.5% Week on Week, W/W and 743.1% W/W, respectively. Meanwhile, sectoral performance was mixed, as the Banking Index garnered 5.6%, Insurance Index 1.9%, and Consumer Goods Index 0.3% while the Oil & Gas Index declined by -1.7% and Industrial Goods Index closed flat.
Commenting on outlook for the market, analysts at Cordros Research stated: “Looking ahead, we expect choppy trading to persist in the holiday-shortened week, with potential bouts of profit-taking in recent gainers alongside renewed bargain hunting in beaten-down names”.
Also, analysts at InvestData Consulting said: “We expect mixed sentiment to continue on bargain hunting and profit taking, as more corporate earnings are expected to hit the market with dividend announcement”.
The post Stock market records recovery amid deadline for release of full year results appeared first on Vanguard News.
