NGX Stock trading start on a Bullish note in first week of August, ASI up 2.0%

NGX stock trading began the week in the positive territory as buy interest in DANGCEM, BUAFOODS and BUACEMENT pushed the NGX-ASI up 2.0% to 144,074.23 points. As a result, YTD return improved to 40.0% (previously 37.2%), while market capitalisation rose 2.0% to N91.1tn. Meanwhile, activity level faltered as volume and value traded fell by 24.8% and 27.5% to 811.1m units and N19.5bn, respectively. Performance across our coverage sectors was mixed as four indices gained, while the Oil & Gas and AFR-ICT indices lost 1.1% and 3bps accordingly, due to sell-offs on TOTAL, ARADEL, CWG, and CHAMS. Topping the leaderboard, the Industrial and Consumer Goods indices gained 5.7% and 4.9% respectively, due to price appreciation in DANGCEM, BUACEMENT, BUAFOODS, and INTBREW. Similarly, gains in AlICO (+9.6%), CORNERST , ZENITHBANK and WEMABANK drove the Insurance and Banking indices higher by 3.4% and 0.1% respectively. Investor sentiment, as measured by market breadth, strengthened to 0.42x (previously -0.02x in the previous session) as 47 stocks advanced, 23 declined while while 57 closed flat.
Meanwhile just twenty companies account for 81.16% of Nigerian Exchange (NGX) market capitalisation at the close of the trading session on Friday. With combined value of N41.385 trillion, MTN Nigeria, Dangote Cement, Airtel Africa, BUA Foods and BUA Cement alone accounted for 46.30% of Nigerian Exchange market capitalisation. Meanwhile just twenty companies account for 81.16% of Nigerian Exchange (NGX) market capitalisation at the close of the trading session on Friday. With combined value of N41.385 trillion, MTN Nigeria, Dangote Cement, Airtel Africa, BUA Foods and BUA Cement alone accounted for 46.30% of Nigerian Exchange market capitalisation. Details from MarketForces Africa’s finding showed that MTN Nigeria Plc (N10.077 trillion) outpaced its market contenders—Airtel Africa, Dangote Cement, and BUA Foods—to become the most valuable listed stock in terms of market value. MTN Nigeria (N10.077trn), Dangote Cement (N8.914trn), Airtel Africa (N8.683trn), BUA Foods (N8.701trn), BUA Cement (N5.01trn), GTCO (N3.624trn), Zenith Bank (N3.141trn), Geregu Power (N2.853trn), and Lafarge (N2.4trn). Others are Transcorp Power (N2.4TRN). International Breweries (N2.32trn), Aradel Holdings (N2.26trn), UBA (N2.02trn) Stanbic (N1.61trn) Presco (N1.55trn) Transcorp Hotels (N1.53trn) Nestle Nigeria (N1.498trn) Access Holding s (N1.492trn), FirstHoldco (N1.398trn) and Fidelity Bank (N1.06trn)
Dangote Cement Plc (N8.914 trillion) has now outpaced Airtel Africa, leaving the telecom company at fourth position after sustained top rank as market mover for a long time. But Airtel Africa stopped breathing at the market value of N8.683 trillion in the Nigerian stock market with persistent thin transactions, which reflected tight ownership. BUA Foods Plc, with N8.701 trillion in market value, has become the third on the list, and the consumer goods sector category king has A potential to raise its head higher among NGX one trillion market cap stocks. With N5.01 trillion in market value after its recent monster rally fuelled by earnings rebound, BUA Cement Plc rose to take position as 5th largest listed company by market cap in the local bourse. The first banking name to make the mark as market mover, GTCO ranked sixth on the list of most valuable stock in Nigerian Exchange. It market capiatlisation settled at N3.624 trillion on Friday ahead of earnings release. Stockbrokers, and investors said that GTCO has lowest low man risks among its major contenders. Its move to list on London Stock Exchange reflects its strong corporate governance and ability to match regulatory demand at highest standard possible.
Zenith Bank Plc trailed GTCO. Zenith Bank stock market value closed at N3.141 trillion in the equity market on Friday ahead of its earnings release. Geregu Power’s market performance has been impressive so far, though the stock appears to have stopped the earlier momentum seen after it became a listed company a few years ago. The company share price has failed to respond to earnings results; hence, its market valuation has flatlined for a long time—responding to nothing, not even a general downturn or market correction. Ranked on the 9th step in the ladder, Lafarge Africa, whose shares are trading under the ticker WAPCO, has become one of the market movers to reckon with in the stock market. Its market capitalisation closed at N2.4 trillion. The company is the third leg of the cement oligarchy in the Nigerian market. Transcorp Power is the 10th largest brand in the Nigerian Exchange by market value. Trading data showed the power generating company’s market value settled at N2.4 trillion, the same level as Lafarge Africa.