Equities Market Gains N3.015trn Amid Corporates Impressive Earnings in Q1

The total market capitalisation value gained N3.015 trillion at the close of trading activities on the Nigerian Exchange Limited (NGX) for the first three months of 2022, as major corporates recorded impressive earnings.

The closing figures showed that the market capitalisation as of March 31, 2022, stood at N25.312 trillion from N22.297 trillion at which it opened for trading activities on January 4, 2020.

Also, the overall market performance measure All-Share Index (ASI), which tracks the general market movement of all listed equities on the Exchange, rose by 9.95 per cent to close at 46,965.48 points in the first three months of the year.

Similarly, the sector performance was bullish as most indices closed the period on an uptrend as of March 25, 2022. NGX Oil & Gas index appreciated the most by 28.12 per cent. NGX Banking index followed with a gain of 8.55 per cent, while the NGX Premium Board index rose by 6.34 per cent.

Others are NGX Pension, NGX Industrial Goods NGX 30 and NGX Lotus II went up by 6.34 per cent, 5.63 per cent, 5.39 per cent, 4.37 per cent, and 1.18 per cent in that order.

On the other side, NGX Insurance and NGX Consumer Goods recorded a year-to-date decline of 6.35 per cent and 4.21 per cent respectively, as of March 25, 2022.

On a monthly review, the Nigerian bourse witnessed positive price movements leading to a bull run throughout January 2020, after which it closed with a 9.1 per cent month-on-month growth in the All-Share Index, and extended the gains by 1.7 per cent in February.

During the period, BUA Foods got listed boosting the market capitalization by N720 billion.

Financial analysts noted that the first quarter of the year was a green one for the Nigerian stock market. It extended the positive outing of January and February amid volatility, better than expected corporate earnings, higher payouts, and positive macroeconomic data to support the buying sentiment.

Speaking on the market performance in the first quarter of 2022, an analyst at PAC Holdings, Mr Wole Adeyeye, said investors have priced in the dividend payout out by listed companies that drive market performance, saying that “Investors have already priced in the dividend in January and February and that is why the market maintained positive growth during the period. However, there was profit-taking in March as most investors did not bother to wait for the dividend payment date.”

On market outlook, Omordion projected mixed sentiment trading by investors in April and beyond as all eyes are on the economic front to see how the nation’s economic managers would navigate the external influence.

“To invest profitably in this changing environment, you need investment education, trading plans and trading tools/ software. These will help manage risk associated with volatility and unstable markets”, he added.