Emmanuel Ochayi
Nigeria’s equity market extended its positive momentum on Tuesday, rising by 0.15%. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) moved from 104,630.3 points to 104,788.35 points.
Similarly, the equity market capitalization increased from N64.791 trillion to N64.889 trillion.
Join our WhatsApp ChannelMarket analysts attributed the gains to strong earnings reports and investor positioning in key stocks.
Investors Focus on Earnings Reports
Analysts at Vetiva Research stated that investors are closely monitoring full-year earnings reports to guide their market positions.
“Investors look to these results for guidance on where to take positions in the market,” Vetiva analysts said.
They further emphasized that earnings reports play a significant role in shaping market sentiment.
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Beta Glass, NNFM Lead Market Gains
On Tuesday, Beta Glass rose from N78.65 to N86.50, gaining N7.85 or 9.98%. Northern Nigeria Flour Mills (NNFM) also performed well, moving from N66.65 to N73.30, an increase of N6.65 or 9.98%.
Chellaram advanced from N7.18 to N7.89, adding 71 kobo or 9.89%, while Red Star Express climbed from N5 to N5.50, up by 50 kobo or 10%.
Analysts Expect Bullish Performance
Futureview research analysts noted that the equity market had been on a positive trend due to strong earnings reports and increased activity in the banking sector.
“Last week, the domestic equity market continued its positive momentum with the NGX All-Share Index advancing by 0.87% to close at 104,496.12 points, up from 103,598.30 points in the prior week,” Futureview analysts said.
They highlighted that the market’s bullish performance was also driven by additional share listings in the banking sector.
“The market’s bullish performance was driven by strong earnings reports and the listing of additional shares in the banking sector, as investors positioned themselves ahead of anticipated dividend payouts,” they added.
Looking ahead, analysts believe that the equity market will maintain an upward trajectory.
“We expect the local bourse to perform bullish this week, fueled by strong interest in solid stocks and dividend positioning,” they further stated.
Active Trading in Banking Stocks
On Tuesday, investors traded a total of 471,707,851 shares worth N19.889 billion in 14,600 deals. Some of the most actively traded stocks included FBN Holdings, Zenith Bank, Universal Insurance, UACN, and GTCO.
Market analysts believe that strong interest in the banking sector and dividend expectations will continue to drive market activity in the coming days.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
