….As Market Cap Hits N72.78Trn On Friday
Despite the bullish momentum that characterized the trading sessions over the past days in the Nigerian Exchange (NGX), Bancorp Securities Limited’s investment experts have cautioned investors on the need to tread cautiously in their investments as the positive momentum may not be sustainable.
The analysts gave the warning on the firm’s Daily Market Report at the close of trading today.
Specifically, the experts hinged their advice on their projection that the sustainability of this rally may be tested by expected half-year earnings expected in the coming days
- Advertisement -
The researchers projected: “Sentiment remained bullish as the UD Ratio (up-to-down volume ratio) surged to 5.06x from 1.07x, and market breadth improved significantly to 2.08x, with 50 gainers far outpacing 24 losers.
“However, while momentum remains bullish, investors are advised to tread cautiously, as the sustainability of this rally may be tested by expected half-year earnings expected in the coming days”, they added.
Meanwhile, during Friday’s trading, sustained buying pressure in blue chip stocks, particularly STANBIC (9.98%), OANDO (9.35%), BUACEMENT (7.53%), and GTCO (0.70%), increased the NGX All-Share Index (ASI) by 0.67%, closing the week at 115,429.54 points.
The trend extended the week-to-date gain to 0.71%, translating to an increase of N485.82 billion in investors’ wealth, as market capitalization climbed to N72.78 trillion at the end of the trading session.
According to data from the Nigerian Exchange Group (NGX) all the sectorial indices closed in the green, reflecting broad-based bullish sentiment.
The data showed that the Industrial Goods index led the rally with a 2.41% gain, based on impressive performances in BERGER (8.06%), BUACEMENT (7.53%), and TRIPPLEG (9.63%) while the Oil and Gas index followed due to gains in MRS (9.94%) and OANDO (9.35%), which helped to offset loss by CONOIL (-9.99%), indicating selective accumulation in energy stocks despite volatility in crude markets.
In addition, the Insurance index also increased by 0.87% driven by gains in LASACO (6.67%), MANSARD (3.72%), and ROYALEX (6.90%).
Similarly, despite mixed performances in Banking stocks such as ETI (-1.15%), FIRSTHOLDCO (-5.37%), FCMB (-5.71%), and FIDELITYBK (-2.28%), the Banking index edged up by 0.20%, based on gains by Tier-1 stocks, particularly ACCESSCORP (0.45%), GTCO (0.70%), and ZENITHBANK (0.20%).
The Consumer Goods index closed slightly positive at 0.18%, reflecting modest interest in staples in the face of cautious consumer sentiment.
On the activity chart, at the close of the trading on Friday, TANTALIZER emerged as the most traded stock by volume, accounting for 45% of total market volume, with 420.45 million units traded, which likely reflected speculative retail interest. GTCO followed with 35.44 million units, and it led the value chart, accounting for 14% of total turnover after closing at all-time high of NN71.50.
