October 21, 2024/CSL Research

After a mixed performance throughout the week, the domestic equities market ended on a positive note, buoyed by the successful listing of ARADEL on the Exchange via introduction. Despite losses in three out of the five trading sessions, the NGX All-Share Index advanced by 48bps w/w, closing at 98,070.47 points. This pushed the year-to-date (ytd) return up to 31.16% ytd compared to +30.54% ytd the previous week.

The week’s bullish momentum was primarily driven by strong buy interests in key stocks such as
TRANSPOWER (+19.29% w/w), DANGSUGAR (+13.06% w/w), and OANDO (+10.00% w/w). However, ARADEL saw an 11% week-to-date decline post-listing as existing investors moved to take profit. In another space, we observed renewed interests from foreign portfolio investors in GTCO, and which in part contributed to the positive w/w movement of +2.5% w/w.

Sector performances were mixed during the week with the Consumer Goods – NGXCNSMRGDS (+1.42% w/w), Oil and Gas – NGXOILGAS (+1.08% w/w), and Industrial Goods – NGXINDUSTR (+0.04% w/w) sectors posting positive numbers. The Insurance – NGXINS (-1.23% w/w) and Banking – NGXBNK (-0.51% w/w) sectors registered losses. JAPAULGOLD and SEPLAT were the most actively traded stocks in terms of volume and value, respectively.

In corporate news, TRANSPOWER’s Q3’24 results revealed a remarkable 197.59% surge in PBT to ₦81.12bn. This led to heightened buy interests on the stock during the week. Similarly, NIDF posted a total return of 327.9% in its Q3’24 report, with the declaration of a quarterly distribution of ₦5.09 per unit.

Looking ahead, we expect equities market activities to be driven by corporate action disclosures in the interim, as investors trade cautiously while rebalancing their portfolios to lock in gains into the last quarter of the year.

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