Nigeria's equities market kicked off the new week with a positive performance, registering a gain of 0.41 percent. This surge was primarily driven by investors who showed interest in shares of FTN Cocoa, Stanbic IBTC Holdings, GSK, Lasaco, and Nascon.
Investors are strategically investing in value stocks as companies roll out their half-year (H1) results. Stocks with a history of attractive interim dividend payments have been particularly favored.
The positive closing on Monday, July 24, contributed to the market's year-to-date (YTD) return, which now stands at an impressive 27.35 percent. Investors collectively booked gains of approximately N145 billion at the close of trading on Monday.
Analysts at Vetiva, a Lagos-based firm, expect investors to lean towards fundamentally sound stocks as they analyze the latest earnings results during the ongoing second-quarter (Q2) 2023 earnings season. They predict a positive reaction in stocks that outperform the market's expectations for H1 2023 performance.
The Nigerian Exchange Limited (NGX) All-Share Index and the equities market capitalization witnessed an increase, rising from the preceding day's figures of 65,003.39 points and N35.394 trillion to 65,268.28 points and N35.539 trillion, respectively.
FTN Cocoa demonstrated notable growth, moving from an opening low of N2 to N2.20, marking a 10 percent increase. Similarly, GSK's share price rose from N7.50 to N8.25, reflecting a 10 percent gain.
Futureview research analysts anticipate a bullish trading pattern in the current week, attributing it to the rollout of H1 results. Investors are expected to seek opportunities in selected stocks with attractive dividend yields and strong financial performance, while also being cautious about giving up gains in the market.
However, analysts recommend that investors focus on fundamentally sound stocks to make informed and prudent investment decisions.
Notably, Lasaco's share price increased from N1.60 to N1.76, up by 10 percent. Nascon also rallied, with its share price rising by 10 percent from N29 to N31.90. Additionally, Stanbic IBTC Holdings recorded a 10 percent increase, with its share price moving from N62.70 to N68.95.
As the week progresses, market participants will closely monitor these developments to gauge the market's resilience and potential opportunities for further growth.
