June 17, 2024

Renewed interest in banking stocks lifts stock market

Renewed interest in banking stocks lifts stock market

…as investors gain N399bn

By Nkiruka Nnorom

The stock market reversed its losing streak last week on the back of renewed interest in the shares of banks.

This resulted in 0.71 percent marginal returns and a N399 billion increase in investors’ assets despite the holiday shortened week in celebration of Nigeria’s democracy day.

Specifically, bargain hunting in Zenith Bank, which recorded 8.3 percent price appreciation and Guaranty Trust Company, GTCo Plc which advanced by 5.6 percent drove the weekly returns as the All Share Index, ASI, rose marginally by 0.71 percent to close at 99,925.29 points.

Consequently, the Month-to-Date, MtD, and Year-to-Date, YtD, returns increased to 0.6% and 33.6%, respectively.

In similar vein, the market capitalization of the listed equities rose by N399 billion or 0.7 percent to N56.527 trillion at the end of the week.

Performance across sectors was largely bullish as all the five sectors appreciated.

The oil & gas sector led, rising by 5.3 percent, followed by the banking (+3.6%), insurance (+3.4%), consumer goods (+1.1%), and industrial goods (+0.3%) sector.

Activity levels also improved, as traded volume and value increased by 54.6 percent and 43.1 percent to  2.633 billion units and N43.652 billion respectively. 

The financial services sector, measured by volume, led the activity chart with 2.176 billion shares valued at N31.741 billion traded in 17,295 deals; thus contributing 82.64 percent and 72.72 percent to the total equity turnover volume and value respectively. 

The consumer goods sector followed with 176.983 million shares worth N5.309 billion in 3,785 deals while the oil and gas sector, with a turnover of 71.184 million shares worth N3.906 billion in 2,648 deals placed third.

Analysts, however, are projecting a mixed performance this week.

According to analysts at Cordros Capital, the overall market sentiment is expected to be mixed, “especially given the lack of significant drivers to buoy investors’ interest over the near-term before the earnings season.”

“One potential factor that could change the direction of activities may be upcoming share issuances by banks,” they added.