Stock Market Edges Higher on Telco, Banking Stocks Rally
The Nigerian stock market edged higher on a rally in telco and banking indices. Buying interest in the telecommunications giant AIRTELAFRI, which reached a new year-high of NGN3,655.70, pushed the local bourse to a bullish close in the first trading session of the week.
The Nigerian Exchange (NGX) All-share index (ASI) climbed +0.57% to settle at 251,125.02 points, improving the year-to-date return to +61.38%.
In line with the market’s green close, sentiment was positive, as measured by market breadth, which improved to 1.21x from 1.03x. Stockbrokers observed that 41 counters recorded price appreciation, led by AIRTELAFRI (+10.00%), while 34 stocks declined, with MCNICHOLS as the largest decliner, down 10.00%.
However, trade volume softened, down 11.60% to 629.26 million units, while trade value increased by +40.59% to NGN40.88 billion. ACCESSCORP was the most traded by volume, with 61.29 million units, while ARADEL was the most traded by value, with NGN11.99 billion worth of trades.
Across sectors, buying interest was limited to the financial sector indices, with the Insurance sector leading gains, up +0.54%, supported by SOVRENINS (+9.65%), SUNUASSUR (+3.98%), and WAPIC (+3.46%).
Likewise, the Banking sector advanced by +0.08%, lifted by FCMB (+3.46%) and WEMABANK (+1.65%). Meanwhile, a 3.89% decline in ARADEL’s price offset gains in OANDO (+4.57%), pulling the Oil and Gas Index into negative territory (down 1.77%).
The Consumer Goods Index also closed 0.26% lower, due to declines in CHAMPION (-5.78%), PZ (-3.92%), and INTBREW (- 1.57%). However, the Industrial Goods index was quiet, as all its counters closed flat.
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