INTRODUCTION
Enhanced by gains on the share price of Seplat, equities trading on the floor of the Nigerian Stock Exchange opened the first trading day of the week on positive note, thus, the lead performance pointer- NGXASI added 20Bpts to its trading points, and closed at 52,319.94 from 52,215.12. It was a mixed performance amongst the observed market indices in this report, as shown in the index movement table. Thus, Week to Date, the lead index is 20Bpts above the opening point, while the total gained points in the month July is now 97Bpts. See the index movement table for details.
HEADLINE INFLATION JUNE, 2022
In June 2022, the inflation rate increased to 18.60% on a YoY basis. This is 0.84% higher when compared to the rate recorded in June 2021, which is 17.75%. This means that the headline inflation rate increased in the month of June 2022 as against the corresponding month in 2021. Increases were recorded in all COICOP divisions that yielded the Headline index. On a month-on-month basis, the Headline inflation rate increased by 1.82% in June 2022, this is 0.03% higher than the increase rate recorded in May 2022 (1.78%). In our opinion, this should increase attraction to the equities market, but for the fact that most investors may prefer avoiding increasing risk rate in the stock market due to the 2023 electioneering uptick, the increase may not have much impact on the market performance.
TECHNICAL VIEW
Technically, judging by the lead index performance, the leading market trend remains an uptrend, meanwhile, the market had consistently put up strong resistance against the bear before today’s gain. Nevertheless, it is necessary to note that, as on Friday, today’s gain was mainly enhanced by the 10.00% price appreciation on the share price of Seplat, thus, scanning through the trading patterns of most active equities, we observed a sharp difference between the lead index pattern and other stocks; on the strength of this, we strictly recommend that traders should carefully study the trading pattern of their respective equity of choice, before taking any investment decision.
INDEX MOVEMENTS
The total value gained by the Market Capitalization of the listed equities during today’s trading activities was N56.526 billion, same as 20Bpts above the opening value. Meanwhile, trading activities for the day produced 16 ADVANCERS and 22 LAGERS. NGXASI Year to Date gain is now 2,248Bpts while the Market Capitalization Year to Date gain now stood at N5.917 trillion same as 2,654Bpts above the year’s opening value.
GAINERS & LOSERS
Leading on the advancers’ log is Seplat with 10.00% price appreciation that rounded up its share price at N1,430.50 from N1,399.50. Cornerstone followed with 8.77% price appreciation, thus, rounding up the day’s trade at N0.62 from N0.57. RT-Briscoe came third on the log with 8.11% gain, closing at N0.40 from N0.37. Wema Bank and Fidson Healthcare completed the top 5 price percentage gainers’ log with 6.95% and 5.21% respectively.
On the lager’s log, Computer warehouse (CWG) topped with 10.00% loss, having dropped from N0.90 to N0.81, Academy Press followed closely on the log with 9.50%, thus, it ended at N2.00 from N2.21 where it closed on the last trading day. Honeywell Flour was third on the list with 9.09% loss that rounded up its price at N2.50 from N2.75. Completing the top five (5) price percentage losers’ log are Nahco and Regency Alliance with 8.81% and 7.41% price loss respectively. See our top performers’ log for details.
TOP PERFORMERS LOG
Top 5 Trades
Investors did a total of 380 deals on the shares of Zenith Bank, while a total of 317 transactions were made on MTNN shares through today’s trading session. GTCO was next on the top 5 list with 306 transactions, while ACCESSCORP and UBA completed the top five (5) trades for the day, as shown in the below table.
Top 5 Performance by Volume
Traders traded 12.95 million units of UBA shares through the day’s trade. Zenith Bank followed on the most traded by volume with 10.67 million shares. FBN, Accesscorp and GTCO completed the top 5 most traded shares for the day.
Top Performance by Value
The Value of the shares traded on Seplat shares (N1.332 billion) was the highest for the day, followed by MTNN where investors exchange N861.52 million worth of shares. Zenith Bank, GTCO and Airtel-Africa respectively completed the list as shown in the above table.
Please note that the following dates are due within the week, the recently announced N2.60 cash dividend by Bua-Cement will be credited to investors account from 21st July, 2022, while Nahco N0.41 dividend and 1FOR5 scrip closure date is today 18th July, 2022.
In Conclusion, we strictly recommend a cautious trade around the market arena, and maintained that, investors should adopt long term investment strategies, while taking advantage of dropping prices. Safe Trade.
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