The Nigerian equities market continued its bull run Monday helped by strong demand for shares as more investors take position for possible future gains.
Consequently, the Nigerian Stock Exchange (NSE) All Share Index gained 1.57 per cent to close at 28,986.20, compared with the appreciation of 0.34 per cent recorded last Friday. Its year-to-date (YTD) return now stands at 3.23 per cent. Also, the market capitalisation of listed equities correspondingly increased by N143.23 billion to end the trading at N9.26 trillion ($59.48 billion).
The bulls were on rampage as 48 equities appreciated in value compared with 12 that dipped. Total Nigeria Plc led the price gainers with N6.02 to close at N126.59 per share.
However, the banking sector of the financial services sector remained the most active in terms of the number of shares sold. It led the equities sector with a turnover of 335.75 million ordinary shares valued at N1.63 billion exchanged in 2, 684 deals.
The volume of shares sold in the banking sector was largely driven by the activity in the shares of Unity Bank Plc, First City Monument Bank Plc, Fidelity Bank Plc and Sterling Bank Plc.
Trading on the shares of the four banks accounted for 216.7 million shares or 64.55 per cent of the subsector’s turnover.
Experts noted that as government securities are currently experiencing a low rate regime, the equities market could prove to be a worthwhile investment.
“Investor confidence has gradually been restored with the impressive market return in 2012, which could lead to increased participation and opportunities going forward. Investors are advised to consider investment opportunities in the under listed stocks, as they have good fundamentals that can generate good returns in the medium to long- term,” said analysts at FSDH Securities Limited.
On their part, analysts at BGL Limited said the current market development surmounted the usual tight liquidity trend of the early period of the year which takes its toll on the market in January as notable stocks closed on bid.
“There was an all-round growth across sectors on the local bourse while the NSE-30 comprising of large capped stocks gained significantly. We however suggest that investors should act fast with their buy mandates not to be left out in the market rally,” they said