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The Nigerian equity market commenced the week on a positive trajectory, with key performance indicators, the NGX-ASI and Market Capitalization, both advancing by 0.64%. The market index (All-Share Index) added 624.57 basis points in today’s trading session, reflecting a 0.64% increase to close at 98,694.80. Similarly, the Market Capitalization also gained ₦378.43 billion, representing a growth of 0.64%, settling at ₦59.80 trillion. The local bourse positive performance for today was driven by investors renewed buying interest in major market sectors, particularly the Oil & Gas sector, which posted an impressive growth of +4.43%, leading to a ₦378 billion gain in investors’ wealth.
Furthermore, market activities were up, as the Total Volume and Total Value traded for today increased by 12.87% and 130.46% respectively. Approximately 405.02 million units valued at ₦27,568.62 million were transacted across 8,281 deals. UBA was the most traded stock in terms of volume, accounting for 34.12% of the total volume of trades, followed by STERLINGNG (9.77%), ACCESSCORP (7.40%), NB (5.78%), and FCMB (4.98%) to complete the top 5 on the volume chart. SEPLAT emerged as the most traded stock in value terms, with 66.57% of the total value of trades on the exchange.
DAARCOMM and IKEJAHOTEL topped the advancers’ chart for today with a price appreciation of 10.00 percent each, trailed by SEPLAT with (+9.99%) growth, PZ (+9.90%), CHAMPION (+9.65%), NNFM (+8.48%), TRIPPLEG (+7.60%) and twenty-four others. Seventeen (17) stocks depreciated, where REGALINS was the top loser, with a price depreciation of -8.20%, as CILEASING (-5.01%), DANGSUGAR (-3.00%), CHAMS (-1.50%), MTNN (-1.31%), and FIDELITYBK (-0.36%) also dipped in price. In that regard, the market breadth closed positive, recording 31 gainers and 17 losers.
In addition, the market sector performance was positive, as four of the five major market sectors were up, led by the Oil & Gas sector which grew by (+4.43%), followed by the Insurance sector by (+1.07%), the Banking sector by (+0.96%), and the Consumer goods sector by (+0.23%). The Industrial sector was down by -0.04%.
Following the data published by NBS, the country’s GDP grew by 2.51% in Q2’2023 from 2.31% in the first quarter of the year, sustaining the country’s economic expansion. However, Q2’2023 growth rate decreased by -1.03% points from 3.54% recorded in Q2’2022 due to slow down in the country’s economic activities buoyed by various macro/microeconomic headwinds, but increased by 0.20% when compared to 2.31% recorded in Q1’2023.
Oil Sector Contribution Dipped by -13.97% q/q
As regards components contributing to the GDP, the Non-Oil contributed 94.66% to the GDP growth, which was 1.05% higher than 93.67% contribution in Q2’2022, and 0.93% higher than 93.79% contribution in Q1’2023. On the other hand, the Oil contribution to the GDP declined by 13.97% to 5.34% in Q2’2023 as against 6.21% in Q1’2023, due to drop in Crude oil
production in the quarter under review.
In terms of growth, the non-Oil components advanced by 81 basis point to 3.58% in Q2’2023, as against 2.77% in Q1’2023. Whereas, the real growth in the Oil component of the GDP stood at -13.43% in Q2’2023, which represent a decrease of 9.22% points relative to -4.21% recorded in Q1’2023. The slight growth recorded in the oil sector in the first quarter of the year
was hampered in the second quarter due to increase cases of oil theft and pipeline vandalism. The average daily oil production (1.22mbpd in Q2’2023) was lower than the daily average crude oil production of 1.43mbpd recorded in the same quarter of 2022, and also 0.29mbpd lower than the Q1’2023 production volume of 1.51mbpd.
Services and Agricultural Sectors Recorded Positive Growth
After a decline of -0.90% in the first quarter of the year due to the naira crunch in the, alongside existing issues such as disruption in food supply caused by the Russian-Ukraine war, Flooding, and Insecurity, the Agricultural sector recorded a positive growth rate in Q2 2023 (grew by +2.40% basis point to +1.50%, when compared to -0.90% recorded in Q1 2023). It also increased by 30bps when compared to the corresponding period of 2022. Furthermore, the sector contributed 23.01% to the overall GDP in real terms in Q2’2023, which is higher than its contribution in Q1’2023 (21.66%), but lower than its contribution in the second quarter of 2022 (23.24%).
The Industrial sector declined by 226bps to -1.94% in Q2’2023 in real terms, compared to a positive growth of +0.31% witnessed in Q1’2023, driven by high exchange rate of Naira to the US Dollar, high inflation rate and high lending rate. Also, the sector’s contribution to GDP was down to 18.56% in Q2 2023 from 21.05% in Q1 2023, also down by -0.84% points when compared 19.40% contribution in Q2 2022.
