NGX Daily Gain Spikes as Inflation Fears Worsen
The Nigerian Exchange, NGX, continues to boom as investors keep pumping their investable funds into value, growth stock in the local bourse with headline inflation worsened to 21.47%. Today, daily gain spikes above N133 billion due to buying interest in MTN Nigeria, Zenith Bank shares and others.
Consequently, year-to-date return widened to 15.26%, tracking behind the average inflation rate over the same period – coincidentally, yields in the fixed income market have lowered. It appears investors are willing to take more risk, as more buying orders have been executed at a level seen earlier this year when market indicators were at their peak.
Today’s market performance was supported by buying interest across the five major market sectors. The Nigerian Exchange All-share index added 244.98 basis points to close at 49,233.02 points, a few basis points away from the psychological market of 50,000.
Market activities were upbeat as the total volume and total value traded for the day increased by 153.04%, and 27.07% respectively, according to trading data cited by Atlass Portfolios Limited in a market report.
Stockbrokers told clients via email that approximately 222.78 million units valued at ₦2,129.16 million were transacted in 2,756 deals. STERLNBANK was the most traded stock in terms of volume, accounting for 68.86% of the total volume of trades.
The tier-2 bank was followed by GTCO (4.70%), ZENITH BANK (3.90%), FBNH (2.23%), and UBA (2.03%) to complete the top 5 on the volume chart. Meanwhile, AIRTELAFRI was the most traded stock in value terms, with 34.96% of the total value of trades on the exchange, according to Atlass Portfolios stockbrokers.
CAP topped the advancers’ chart with a price appreciation of 9.88 percent, trailed by ARDOVA (9.51%), CORNERST (8.33%), THOMASWY (8.33%), LEARNAFRCA (8.12%), and fifteen others. >>>Treasury, OMO Bills Trade Quiet as Inflation Fears Rise
Today, seven stocks depreciated, and GEREGU was the top loser, with a price depreciation of -8.11% to close at ₦102.00. CHAMS lost 4.35%, GTCO dropped by 1.91%, UCAP declined by 1.46%, STERLNBANK fell by 0.73% and FBNH dropped 0.46%.
Thus, the market breadth closed positive, recording 20 gainers and 7 losers while the market sector performance closed positive.
Stock market key indices were up, led by the Insurance sector (+1.07%), followed by the Banking sector (+0.72%), the Oil & Gas sector (+0.62%), the Consumer goods sector (+0.15%), and lastly, the Industrial sector (+0.13%).
Overall, the equities market capitalisation advanced by ₦133.43 billion, representing a growth of +0.50% to close at ₦26,815 trillion from ₦26,609.21 trillion the previous day. # NGX Daily Gain Spikes as Inflation Fears Worsen