The Nigerian stock market maintained its upward trend as proprietors led a fresh rally that raised the total market capitalization by N177 billion.Â
The growth indicates heightened investors’ confidence, with bargain hunters buying undervalued shares in value sectors like consumer goods, telecommunications, and agriculture.
After trading closed, the Nigerian Exchange (NGX) All-Share Index increased by 296.39 points, or 0.27 percent, to 111,902.61 points. The market capitalisation rose from N70.387 trillion to N70.564 trillion, showing growing interest in medium and large-cap stocks.
The improved mood was primarily facilitated by the improved performance of stocks such as Okomu Oil, MTN Nigeria, Nigerian Breweries, Honeywell Flour Mills, and Northern Nigeria Flour Mills (NNFM). The stocks performed well and ranked among the top contributing factors in the improved overall mood.
Investor interest remained robust with more advancing issues than decliners. 39 issues increased in value, while 28 decreased in value. 61 issues closed unchanged, which was a generally positive trading backdrop.
Learn Africa and University Press posted the highest percentage gains among today’s leaders, both of which went up 10 percent to close at N4.51 and N5.61, respectively. Northern Nigeria Flour Mills was also among the day’s leaders, gaining 9.98 percent to close at N130.55. Honeywell Flour Mills closed third, up 9.95 percent to close at N21. Omatek Ventures also rose 9.86 percent, closing at 78 kobo.
While the market was euphoric, some shares fell to the bottom. The biggest victims of the downsizers were Nigerian Enamelware, which fell by 9.88 percent to N22.80, Academy Press, which fell by 10 percent to N4.05, Abbey Mortgage Bank, which fell by 9.96 percent to N6.87, and Multiverse Mining & Exploration, which fell by 9.56 percent to N8.05. Skyway Aviation Handling Company fell by 9.94 percent to N59.80.
Turnover increased 25.1 percent, with 512.17 million shares exchanging hands, valued at N17.12 billion, in 16,711 deals. This shows an enhanced pick-up in investor confidence before the session, a sign of confidence in fundamentals building momentum.
The highest traded volume was Japaul Gold & Ventures’ 58.91 million shares, which traded at N117.19 million. Fidelity Bank’s 48.22 million shares traded at N883.58 million. Custodian Investment’s 37.48 million shares traded at N756 million. Guaranty Trust Holding Company (GTCO) also had a forgetful day, as 29.51 million shares traded at N2.05 billion. FCMB Group placed fifth with 22.77 million shares that traded at N226.66 million.
Afrinvest analysts reported that sentiment is still muddled, but the rally’s depth testifies to persistent bullish demand, specifically from arbitraging investors on undervalued circumstances. They added that direction also persists in the short term as long as there isn’t any macroeconomic shock in fundamentals.
