The Nigerian stock market has continued in its upward trend despite disappointing Gross Domestic Product, GDP numbers , according to a report which indicated a 2.51% growth in the second quarter of 2023, Q2’23, a significant descent compared to both the first quarter figure and analysts’ projections.
The Nigerian stock market has experienced a bullish trend following the release of a report indicating a 2.51% growth in the second quarter of 2023 (Q2’23) in the Gross Domestic Product (GDP).
This growth figure, however, fell significantly below both the first quarter’s performance and analysts’ initial projections.
NGX All-Share Index Climbs 1.3% WoW to 65,558.91 Points
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) demonstrated a 1.3% Week-on-Week (WoW) increase, concluding at 65,558.91 points.
This rise was driven by investor interest in companies such as BUA Foods, which saw a 7.9% rise, Dangote Sugar with a 35.7% increase, and Transcorp, which gained 39.4%.
Consequently, the Month-to-Date (MtD) and Year-to-Date (YtD) gains rose to 0.6% and 26.3%, respectively. In terms of trading activity, the total trading volume increased by 7.3% WoW, while the trading value experienced a slight decline of 0.4% WoW.
The Consumer Goods Index and Insurance Index exhibited increases of 11.6% and 1.20%, respectively, while the Banking Index decreased by -3.6% and the Oil and Gas Index by -2.4%. The Industrial Goods Index maintained a flat position.
Market analysts from Cordros Research shared their outlook, highlighting the potential impact of macroeconomic developments and fixed-income market yields on investor sentiment.
They emphasized the importance of choosing fundamentally strong stocks due to the challenging macro environment affecting corporate earnings.
Cowry Asset Management Limited analysts also weighed in, expecting the trend of positive sentiment to continue.
They noted the influence of elevated Treasury bill rates, renewed interest in bargain opportunities, and portfolio adjustments on the market. They advised investors to focus on stocks with strong fundamentals.
In addition, analysts from InvestData Consulting predicted mixed sentiment in response to high Treasury bill rates and a hyperinflationary environment.
They highlighted the ongoing search for bargain opportunities, portfolio realignment, anticipation of earnings reports from first-tier banks, and persistent sector rotation as key factors influencing the market.
