Stock Market Gains N905.57bn on Investors Demand for Airtel Africa
Kayode Tokede
The stock market segment of the Nigerian Exchange Limited (NGX) appreciated by N905.57billion yesterday amid investors’ demand for Airtel Africa Plc.
As the stock price of the telecommunication giant gained 10 per cent or N332.30 to close at N3,655.70 per share, the market capitalisation moved from N160.077 trillion it closed for trading last week to N160.982 trillion, representing an increase of 0.57per cent or N905.57 billion.
Also, the NGX All-Share Index gained 0.57per cent or 249,712.37 basis points to close at 251,125.02basis points from 249,712.37 basis points it closed for trading last week.
Consequently, the NGX ASI Month-to-Date and Year-to-Date returns settled higher at +3.7per cent and +61.4per cent, respectively.
On Sectors, the NGX Insurance (+0.5per cent) and NGX Banking (+0.1per cent) indices advanced, while the Oil and Gas (-1.8per cent) and NGX Consumer Goods (-0.3per cent) indices closed lower. The NGX Industrial Goods index closed flat.
The total volume traded declined by 30.2per cent to 497.09 million units, valued at N31.62 billion, and exchanged in 74,129 deals. Access Holdings Plc was the most traded stock by volume at 61.29 million units, while Aradel Holdings Plc was the most traded stock by value at N11.99 billion.
As measured by market breadth, market sentiment was positive (1.2x), as 35 stocks gained relative to 30 losers. Airtel Africa (+10.per cent) and International Insurance Plc (+9.7per cent) led the gainers, while Mcnichols (-10per cent) and TIP (-9.9per cent) recorded the highest losses of the day.
Capital market analysts expected trading on the Nigerian stock market to remain relatively muted this week, with sentiment lacking a major positive catalyst to drive a broad rebound.
The market closed last week on a subdued note, extending its bearish momentum as widespread losses in heavyweight counters dragged overall performance.
Cordros Securities Limited said, “we expect market activity to remain relatively subdued in the near term in the absence of a major positive catalyst to drive sentiment. Nonetheless, we do not rule out selective bargain hunting across fundamentally sound names following the recent moderation in prices.”
Looking ahead, Cowry Assets Management Limited stated that “the Nigerian equities market is expected to remain mixed and cautious in the near term, as weak sentiment and profit-taking continue to weigh on performance.
“ Elevated fixed-income yields and macroeconomic uncertainties may limit broad-based gains, though selective buying could persist in fundamentally strong stocks, particularly in the banking and oil & gas sectors. Overall, trading activity is likely to remain stock-specific with continued short-term volatility.”
