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Equities Surge at NGX with Dangote Cement, BUA Cement, and BUA Foods Driving Demand
The Nigerian stock market exchange group has witnessed a continuous exponential appreciation in equities in the past week.
This development could be hinged on the demand for blue-chip and dividend-paying stocks. Dangote Cement, BUA Cement, and BUA Foods, also surged across major market sectors, shooting up the investors' gains to an impressive N4.3 trillion Week-on-Week (WoW).
Specifically, the price gains of Dangote Cement by 28.82%, BUA Cement by 20.98%, and BUA Foods by 13.25%, among others, contributed to a notable 8.3% increase in the NGX All Share Index (ASI), closing Friday at 102,401.88 points.
As a result, the Year-to-Date (YtD) return saw a substantial rise of 36.95%, and the market capitalization, representing the total investment value in the Exchange, increased by N4.3 trillion, closing the week at N56.038 trillion, up from N51.735 trillion the previous week.
Meanwhile, market operators are closely analyzing the results of the latest Treasury Bills auction. The earnings reporting season is reaching its peak, with expectations for dividends ahead of the Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) scheduled for late February. CBN Governor Dr. Yemi Cardoso's commitment to reducing inflation to 21% in 2024 has drawn attention, with speculation about how the apex bank plans to achieve this target, including potential rate hikes in the upcoming crucial meeting.
This meeting comes six months after the benchmark Monetary Policy rates were left unchanged at 18.75% since July 2023.
In response to the market developments, analysts at InvestData Consulting and Cordros Research admonished the investors to make the best of the season while also hoping for a continuous flow of the development.
