The stock market of the Nigerian Exchange Limited (NGX) reversed prior day’s loss with a gain of 0.41 per cent amid investors renewed interest on 21 stocks.
The market positive performance yesterday was driven by price appreciation in large and medium capitalised stocks, which are Nigerian Breweries Plc, Guinness Nigeria Plc, MTN Nigeria Plc, Cadbury Nigeria Plc and Lafarge Africa Plc.
In summary, the All-Share Index (ASI) went up by 171.55 basis points, representing a increase of 0.41 per cent, to close at 41,961.14 basis points from 41,789.59 basis points it opened for trading.
With the gain yesterday, the stock market appreciated by 4.20 per cent from 40,270.72 basis points it opened this year to close yesterday at 41,961.14 basis points.
Similarly, the overall market capitalisation value gained N89.5 billion to close at N21.898 trillion from N21.809 trillion it opened for trading.
Sector performances were broadly bullish today with the Consumer goods (+1.47 per cent), Banking (+0.67 per cent), Oil and Gas (+0.19 per cent), and Industrial (+0.10 per cent) sectors closing northwards.
Furthermore, the market breadth closed positively recording 22 gainers as against 13 losers. Cadbury Nigeria, Guinness Nigeria and University Press recorded the highest price gain of 10 per cent each, to close at N8.80, N33.00 and N1.98, respectively, per share.
AIICO Insurance followed with a gain 9.71 per cent to close at N1.18, while Nigerian Breweries went up by 6.37 per cent to close at N54.25, per share.
Ecobank Transnational Incorporated rose by 6.21 per cent to close at N8.55, while UPDC Real Estate Investment Trust gained 6.21 per cent to close at N8.55, per share.
On the other hand, AXA Mansard Insurance led the losers’ chart by 6.02 per cent to close at N2.34, per share.
Japaul Gold and Ventures followed with a decline of 4.44 per cent to close at 43 kobo, while Courteville Business Solutions dropped by 4.35 per cent to close at 44 kobo, per share.
Mutual Benefits Assurance lost 3.45 per cent to close at 28 kobo, while NEM Insurance and Lasaco Assurance shed 2.50 per cent each to close at N1.95 and N1.17 respectively, per share.
Also, the total volume of trades rose by 96.38 per cent to 558.889 million units, valued at N4.404 billion, and exchanged in 4,683 deals.
Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 75.459 million shares valued at N898.013 billion. AIICO Insurance followed with 18.418 million shares worth N17.810 million, while ETI traded 17.320 million shares valued at N137.322 million.
Transnational Corporation of Nigeria (Transcorp) traded 15.207 million shares valued at N15.492 million, while Fidelity Bank transacted 14.029 million shares worth N38.525 million.
Stock market analysts are of the view that “The price appreciation could be as a result of investors’ sentiment towards the recently released company’s financial statements, as we also anticipate the release of others.”
According to analysts at Cordros capital: “The equities market closed in green territory due to the gains recorded across major sectors.
“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.
“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”