Despite Downward Trend in Global Stocks, Investors Gain N92.72bn on NGX
Kayode Tokede
Investors on Nigerian Exchange Limited (NGX) benefited from a surge in banking stocks yesterday, leading to market capitalisation appreciating by N92.72billion despite bearishness in stock markets globally.
The NGX All-Share Index rose by 0.38per cent to 44,662.96 basis points from 44,492.73basis points it opened for trading.
Consequently, the market capitalisation of stocks listed on the Exchange also appreciated by N92.72billion, a 0.38per cent rise, to N24.33trillion.
As trading closed on the floor of NGX, a total of 159.56 million shares worth N1.95billion were exchanged in 3,608 deals, a 19.08pern cent rise from 146.68 million shares valued at N1.24billion in 3,030 deals during the last trading day.
The bullish sentiment was driven by significant appreciation in banking sector and consumer goods stocks as the NGX Banking Index rose by 1.25per cent and the NGX Consumer Goods Index grew by 1.8 per cent.
The NGX Insurance also gained 0.18 per cent while the NGX Oil/Gas and the NGX Industrial indices both declined.
The market breadth closed positive, with 26 gainers versus six losers. Nigeria Breweries recorded the highest price gain of 9.94 per cent to close at N45.35, per share. NEM Insurance followed with a gain 9.87 per cent to close at N4.12, while PZ Cussons Nigeria rose 8.72 per cent to close at N9.35, per share.
Cadbury Nigeria went up by 7.32 per cent to close at N11.00, while Chams appreciated by 4.35 per cent to close at 24 kobo, per share.
On the other hand, Japaul Gold & Ventures led the losers’ chart by 7.14 per cent to close at 26 kobo, per share, per share. AIICO Insurance followed with a decline of 5.36 per cent each to close at 53 kobo, while AXA Mansard Insurance lost 5.08 per cent to close at N1.68, per share.
Sterling Bank lost 1.41 per cent to close at N1.40, while Jaiz Bank shed 1.11 per cent to close at 89 kobo, per share.
The total volume traded rose by 8.8 per cent to 159.562 million units, valued at N1.950 billion, and exchanged in 3,607 deals. Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 35.240 million shares valued at N39.399 million. AIICO Insurance followed with 29.923 million shares worth N16.012 billion, while Zenith Bank traded 11.479 million shares valued at N247.697 million.
FBN Holdings (FBNH) traded 9.467 million shares valued at N104.411 million, while Union Bank of Nigeria transacted 9.324 million shares worth N61.055 million.
Meanwhile, stocks have seen better days on the global stage as indices in advanced markets continue to plummet amid hawkish monetary policy by their central banks. The FTSE 100 slipped on Monday by 0.2per cent after hitting its strongest close in over two months on Friday, Reuters reported.
Energy and commodity stocks were the worst hits as worries of slowing demand from China drove investor sentiment. Chief Investment Officer at Plurimi Wealth was quoted by Reuters as saying, “Markets are really moving into safe havens because of China COVID curbs. You’re seeing healthcare and utilities being up while the most Chinese sensitive stocks are selling off the most.”
In the US, the S&P 500 and Nasdaq 100 contracts both dropped by at least 0.5% per Bloomberg. Walt Disney Co. defied the gloom, rallying in New York premarket trading after the company brought back former leader Bob Iger as chief executive officer in a surprise move. European equities reportedly edged lower.
