Stock Market Crosses 53,000 Basis Points to Begin Week on Positive Note

Kayode Tokede

Starting the week, the stock market of the Nigerian Exchange Limited (NGX) yesterday extended gains from prior trading session as the All-Share Index crossed 53,000 basis points over renewed bargain hunting by investors.

In summary, the NGX ASI appreciated by 178.22 basis points or 0.34 per cent to close at 53,086.46 basis points from 52,908.24 basis points it opened for trading.   

Consequently, the overall market capitalisation value gained N96 billion to close at N28.619 trillion.

The market positive performance was driven by price appreciation in large and medium capitalised stocks which are; MTN Nigeria Communications (MTNN) Plc, Conoil Plc, Nigerian Exchange Group (NGXGroup), Julius Berger and Eterna Plc.

The market breadth closed positive as 19 stocks gained relative to 13 stocks that declined. Conoil recorded the highest price gain of 9.97 per cent to close at N32.00, per share. Pharma Deko Plc followed with a gain 9.38 per cent to close at N1.75, while Learn Africa gained 8.72 per cent to close at N2.37, per share.

FTN Cocoa processors appreciated by 5.88 per cent to close at 36 kobo, while Chams gained 4.17 per cent to close at 25 kobo, per share. On the other hand, Japaul Gold and Ventures led the losers’ chart by 6.25 per cent to close at 30 kobo, per share. Associated Bus Company followed with a decline of 6.06 per cent to close at 31 kobo, while Unilever Nigeria shed 3.01 per cent to close at N14.50,  per share.

AIICO Insurance shed 2.94 per cent to close at 66 kobo, while Jaiz Bank depreciated by 2.22 per cent to close at 88 kobo, per share.

Meanwhile the total volume of trades rose significantly by 167.03 per cent to 755.624 million units, valued at N8.902 billion, and exchanged in 4,297 deals. Transactions in the shares of FBN Holdings (FBNH) topped the activity chart with 610.414 million shares valued at N6.776 billion. Flour Mills of Nigeria  followed with 22.966 million shares worth N803.915 million, while Wapic Insurance traded 21.604 million shares valued at N8.794 million.

Transnational Corporation of Nigeria (Transcorp) traded 11.567 million shares valued at N14.564 million, while Zenith Bank transacted 8.917 million shares worth N208.879 million.

On market performance, analysts at GTI Securities Limited, said “Transaction on the equity market for yesterday closed positive, as investors’ increased bullish sentiment in MTNN, and 18 Others, lifted the market by 0.34 per cent. We expect fixed income rates to continue to be appealing to investors in the near term.”

While United Capital Plc said “This week we anticipate continued profit taking, we also expect investors to begin bargain hunting by cherry picking fundamentally sound stocks at a discount. We advise investors to buy stocks on our recommendation list at current prices ahead of the first half (H1), 2022 earnings and dividend season.