July 25, 2023 - The bullish trend persisted on the Nigerian Stock Exchange as buy-side activities favored several key stocks, including Seplat, Unilever, NGX Group, FTN Cocoa, Ikeja Hotel, and Sky Aviation. The positive momentum in the market led to a significant increase in the overall market capitalization, with investors' interest showing no signs of waning.
The market recorded another session of strong gains, with a remarkable 1.11 percent increase, amounting to N391 billion. This has pushed the market's year-to-date return to an impressive 28.76 percent. Moreover, in this month alone, the market has surged by 8.23 percent, indicating a robust performance.
The Nigerian Exchange Limited (NGX) All-Share Index and equities market capitalization witnessed further gains compared to the previous trading day. The All-Share Index climbed from 65,268.28 points to 65,991 points, while the market capitalization rose from N35.539 trillion to N35.930 trillion.
Market analysts are optimistic about the prevailing positive mood in the market and anticipate a surge in bargain hunting activities. The positive expectation is largely based on the hope for encouraging corporate earnings releases for the first half of 2023. Consequently, analysts project that the market will continue its upward trajectory throughout the week.
Among the top gainers in Tuesday's session, Ikeja Hotel took the lead, experiencing a 10 percent rise in share price, from N2.70 to N2.97. FTN Cocoa and Seplat Energy closely followed, both recording a 10 percent increase in share price, reaching N2.42 and N1,539.70, respectively.
Sky Aviation demonstrated strong performance, with its share price surging by 9.8 percent, rising from N17.80 to N19.55. Unilever also experienced a notable gain of 9.7 percent, climbing from a low of N15.95 to N17.50. Similarly, NGX Group rallied, witnessing a 9.6 percent increase, with its share price rising from N25.50 to N27.95.
Industry experts expect trading activities to remain robust, with increased volume and value traded on the exchange. Investors' sentiment toward listed corporates, particularly banks, remains positive, buoyed by favorable policies introduced by the new Federal Government administration, particularly appealing to foreign investors. The current low-interest rate environment further strengthens expectations for continued market growth.
Lagos-based research analysts at United Capital advise equity-vested stakeholders to seize the opportunity and take positions this week, anticipating the upcoming second quarter (Q2) and half-year (H1) 2023 earnings season, which is likely to drive further positive market performance.
Overall, the Nigerian stock market continues to demonstrate resilience and optimism, attracting both local and foreign investors as it marches on with a strong bullish stance.