Corporate results to stir fresh bullish trading


RoI: NGX tasks investors on portfolio diversificationAt the backdrop of the sustained bullish run in equities market, investors are anxiously waiting for the influx of companies’ results for the financial year 2023 to take more informed positions.

Meanwhile the bullish run in the Nigerian Exchange Limited, NGX, created N1.12 trillion gain Week-on-Week, WoW for the investors last week.

Analysts have emphasized that already, the market is looking forward to the big corporate names, and particularly more banks and blue-chip that have this month to release their scorecards, just as the numbers released so far have given more insights into market valuation and fundamental analysis as prices continue oscillating.

Analysis of trading last week showed that the NGX market capitalisation which shows the total value of investment on the Exchange closed at N57.158 trillion on Friday from N56.038 trillion the previous week.

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%.

Accordingly, the Month-to-Date, MtD, and Year-to-Date, YtD returns settled at 3.2% and 39.6%, respectively. Trading activity was positive, as total traded volume and value increased by 30.3% W/W and 63.4% W/W respectively.

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.”

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