The Nigerian equities market experienced a robust start to the trading week, with investors celebrating a significant gain of over N534 billion.
This positive development on the Nigerian Exchange Limited (NGX) has buoyed market participants, signaling renewed investor confidence.
The NGX-All Share Index (ASI), a key benchmark indicator for the stock market, surged by 1.6% to close at an impressive 61,949.24 points.
The surge was primarily driven by increased buying interest in prominent companies such as MTN Nigeria, which recorded a 1.7% rise, as well as Stanbic IBTC and Access Corporation, which saw remarkable gains of 9.3% and 9.9%, respectively.
This remarkable upswing has further boosted the Year-to-Date (YtD) return, which now stands at 20.9%, up from 19.0% at the end of the previous trading week.
The market capitalization grew to N33.7 trillion, representing an increase of N534 billion.
While activity levels displayed mixed results, with transaction volume increasing by 20.8% to 1.2 billion shares and traded value experiencing a slight dip of 12.0% to N14.1 billion, the overall sentiment among investors remains positive.
In terms of sectoral analysis, all six indices closed in the green to extend their year-to-date overall market performance.
Leading the charge were the Banking and Insurance indices, which experienced significant advancements of 6.8% and 1.8% respectively. This surge can be attributed to the price appreciation witnessed in Zenith Bank (2.9%), Fidelity Bank (10.0%), and MANSARD (4.6%).
Following closely behind, the Oil & Gas and AFR-ICT Indices witnessed slight upticks of 1.5% and 0.9% respectively, driven by price increases in Conoil (6.0%), Eterna (10.0%), and MTN Nigeria (1.7%). Furthermore, notable price gains in Dangote Sugar (3.0%), Unilever (7.4%), and PZ (4.6%) propelled the Consumer and Industrial Goods Indices, resulting in increases of 0.5% and 4 basis points (bps), respectively.
Looking ahead, analysts at Afrinvest Research express optimism, stating, “Investor sentiment, as measured by market breadth, improved to 1.29 times from 0.78 times in the prior session, with 67 stocks advancing, 14 declining, and 41 remaining unchanged. We anticipate sustained buying activity in today’s (Tuesday) trading session buoyed by improved investor sentiment.”
Overall, the positive start to the trading week, accompanied by strong gains across various sectors, has set an encouraging tone for investors in the Nigerian stock market.
With renewed investor confidence and favorable market conditions, the coming days hold the potential for further growth and continued upward momentum.
Bearish Sentiment Persists: Investors Lose N112 Billion on NGX
Nigerian Stock Market Dips as Weak Momentum Drains N39 Billion from Investors
Dr. Yemi Cardoso’s Nomination Boosts Confidence as Stock Investors Gained N264 Billion
The bullish momentum in the Nigerian Exchange Limited continued on Tuesday as investors pocketed N264 billion in profit following Monday’s gains of N263 billion.
Both the market capitalization and the All-Share Index, which gauge the movement of share prices for all listed companies surged by 0.71 percent to N37.413 trillion and 68,359.22 points, respectively.
This optimistic trading trend emerges as investors increasingly show confidence in the local market and the broader economy, fueled in part by the news of Dr. Yemi Cardoso’s nomination as the Governor of the Central Bank of Nigeria.
As Tuesday’s session drew to a close, the volume of shares traded experienced a significant uptick of 31.33 percent to 676.74 million. However, the number of deals declined by 8.35 percent to 7,659 while the total trade value decreased by 33.97 percent to N5.89 billion.
Market sentiments also leaned towards the bullish side, with 36 gainers outpacing the 27 losers.
Among the top-performing stocks that caught the attention of investors were:
- Berger Paints Plc, which surged by 9.95 percent to conclude the trading day at N11.60.
- Oando Plc, which recently released its audited results for 2021, saw a 9.92 percent increase, closing at N13.30.
- BUA Foods, which gained 6.32 percent to close at N196.70.
- PZ’s shares appreciated by 1.45 percent per unit, ending at N20.
- GTCO Plc stock increased in value by 0.43 percent, closing at N35.40.
On the flip side, the top losers included:
- SCOA Plc, witnessing a 10 percent depreciation in its shares, closing at N1.24.
- Unilever’s shares recorded an 8.28 percent drop, concluding at N13.30.
- United Bank for Africa Plc, which lost 1.96 percent in share value, closing at N17.50.
- FBN Holdings Plc, suffering a 1.69 percent decline, closing at N17.40.
- Accesscorp’s shares depreciated by 0.29 percent, closing trading at N17.40.
The Nigerian Exchange continues to display its resilience and attractiveness to investors, making it an exciting space to watch for potential opportunities and market trends.
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