FeaturedMarket Update

Nigerian Stock Market, More Rewarding for Long Positions

Opening trading activities after the public holiday, equities trading on the floor of the Nigerian Stock Exchange rounded up in the positive territory, as the lead performance pointer- NGXASI added marginal 2Bpts to its trading points, and closed at 51,567.69 from 51,557.41. 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 2Bpts above opening, while the total lost points in the month July is now 48Bpts. See the index movement table for details.


The Nigerian Equities Market had been trending under a heavy pressure from various factors, such as renewed attraction in the fixed income market, electioneering uptick pressure, expectation of economic indices (MPC-July Meeting, Release of Headline Inflation Figure), unstable Fx-Translational Rate, Crude Oil Price, consistent drops in purchasing power, Mixed Feelings on Half Year Earnings Expectations, amongst several others. From experience, period with more negative fundamentals is usually the time for long time investment plan, as most listed equities are now trading at quite an attractive prices. In our opinion, investors with capacity to accommodate long term positions may start doing so in tranches.

Technically, NGXASI maintains an up-trend-DoD, WoW, and MoM, nevertheless, most blue chip are already in a daily strong sell, few are extending the sell position to weekly trends, while most are still in a buy position on a monthly basis. Please understand that, we have observed a sharp deviance in the trends of the lead index and most active listed equities, thus, in our opinion, playing the market by your equities of choice remains the most intelligent investment decision at the moment.

Although we report that the All Share Index gained, the market capitalisation on the other hand closed below the previous close value. Thus, the total value lost by the Market Capitalization of the listed equities during today’s trading activities was N90.140 billion, same as 32Bpts below the opening value. Meanwhile, trading activities for the day produced 11 ADVANCERS and 25 LAGERS. NGXASI Year to Date gain is now 2,072Bpts while the Market Capitalization Year to Date gain now stood at N5.416 trillion same as 2,429Bpts above the year’s opening value.

Leading on the advancers’ log is Computer warehouse (CWG) with 10.00% gain above its previous close price. It rounded up the day’s trade at N0.88 from N0.80, Caverton was next on the chart with 9.84% price appreciation, having moved from N1.22 to N1.34. Academy Press gained 9.52% to close at N2.07 from N1.89. Rt-Briscoe and International Breweries rounded up the top five (5) price percentage gainers’ log with 8.82% and 7.41% respectively. Please see the gainers log for details.

On the lager’s log, Multiverse topped with 10.00% loss, having dropped from N2.10 to N1.89. Red-Star Express followed closely on the log with 9.82% loss, thus, it ended at N2.48 from N2.75 where it closed on the last trading day. Cutix was third on the list with 8.33% loss that rounded up its price at N2.20 from N2.40. Completing the top five(5) price percentage losers’ log are Unity Bank and livestock Feeds with 8.16% and 7.97% price loss respectively. See our top performers’ log for details.

Top 5 Trades

Investors did a total of 494 deals on the shares of GTCO, while a total of 288 transactions were made on MTNG shares through today’s trading session. Zenith Bank was next on the top 5 list with 287 transactions, while UBA and ACCESSCORP completed the top five (5) trades for the day, as shown in the below table.

Top 5 Performance by Volume

Traders traded 51.89 million units of GTCO shares through the day’s trade. Japaul Gold followed on the most traded by volume with 21.91 million shares. UBA, Jaize Bank and International Breweries completed the top 5 most traded shares for the day.

Top Performance by Value

The Value of the shares traded on GTCO shares (N1.06) Billion) was the highest for the day, followed by UBA where investors exchange N147.68 million worth of shares. Presco, MTNN, and Zenith Bank respectively completed the list as shown in the above table.

Please note that the following dates are due within the week, Cornerstone Insurance will be adjusted for N0.05 cash dividend on the 12th July, 2022, Bua-Cement closure date for the recently announced N2.60 cash dividend is 11th July, 2022. Fidson Healthcare closure date for N0.50 dividend is 11th July, 2022, and, Presco was due for N6.60 cash dividend adjustment on 11th July, 2022.

In Conclusion, we strictly recommend a cautious trade around the market arena, and maintained that, investors should adopt long term investment strategies, due to the current market status. Safe Trade.

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