NGX investors gain N1.8trn on impressive earnings, dividends in July

Transactions at Nigerian Exchange Limited (NGX) closed the month of July 2023 on a positive note as earnings and dividend declarations from quoted companies helped NGX’s market cap gain N1.814 trillion.

Despite the profit-taking, selloffs and FX pressures witnessed within the period, the benchmark NGX All-Share index which opened the trading month at 60,968.27 points, closed at 64,337.52 points, representing a 25.53 per cent growth in the month under review.

Also, market capitalization rose by N1.814 trillion from N33.197 trillion to N35.011 trillion.

There were also better-than-expected corporate earnings, higher dividend payouts and relatively improved liquidity as fixed-income yields were not stable in the face of soaring inflation which supported buying interests in the market and the flow of funds into the equity space.

Given the outcome of the Monetary Policy Committee meeting in the month under review, the prevailing mixed economic data and as well more corporate earnings now looking up, analysts believe that positive earnings surprises and possible interim dividend declarations from companies would spur increased bargain-hunting activities on the bourse.

They also added that profit-taking activities on stocks that have experienced substantial appreciation might be possible.

Analysts at Cordros Research said, “In the medium term, we expect investors’ sentiments to be influenced by developments in the macroeconomic landscape and the movement of yields in the fixed-income market”.

Meanwhile, investors have lost a cumulative N391 billion on the first trading day of the week on the Nigerian Exchange Limited (NGX).

The benchmark indices of the All-share index dipped 718.87 absolute points reverting to 64,337.52 from 35,056.39 closing figures last week, while the market capitalization closed the day at N35.011 trillion from N35,402 trillion posted before.

The price movement chart also indicates a weak trading outlook with 49 losers versus 19 gainers.

Related