NGX Edges Higher as Telco, Banks Stocks Drive Rally
The Nigerian Exchange (NGX) rises on bargain hunting in Telcos and banks stocks, rising N41.6 billion in fresh market rallies this week. On Tuesday trading session, investors gained N317 billion due to bargain hunting in both Airtel and MTN Nigeria stocks.
The Nigerian Exchange All-share index advanced by 0.69 per cent as the benchmark index settled at 39,448.46 points on Wednesday following a price appreciation in the highly capitalized stock such as AIRTELAFRI. ZENITH BANK, ETI and GTCO.
Consequently, market breadth closed positive with 21 gainers versus 15 losers. However, market activities closed on a lower note with the volume and value of stocks traded on the exchange depreciated 19.19% and 19.89%, respectively.
A total of 181.47 million units of shares valued at N2.08 billion were traded in 3,599 deals.
TRANSCORP led the volume chart, accounting for 11.30 per cent of the total volume of trades, followed by ETI (9.67%), FCMB (8.44%), STERLNBANK (7.79%), and UBA (6.03%) to complete the top five on the volume chart.
MTNN topped the value chart accounting for 37.24 per cent of the total value of trade on the exchange. NEIMETH, IKEJAHOTEL, and LIVESTOCK topped the gainers’ chart, with their share prices inching upward by 8.61 per cent, 7.69 per cent, and 6.84 per cent, respectively.
Meanwhile, FTNCOCOA led the losers’ table with its share price declining by 8.89 per cent to close at N0.41 after opening the day at N0.45.
Afrinvest said performance across sectors under its coverage was positive as 4 indices gained, 1 index lost while the Industrial Goods index closed flat. The AFR-ICT and Banking indices led the gainers, up 2.1% and 0.5% respectively, on the back of buying interest in AIRTELAF (+4.9%), GTCO (+0.4%), and ETI (+5.5%).
In the same vein, the Oil & Gas and Insurance indices gained 8bps and 1bp respectively, driven by price appreciation in OANDO (+0.4%), LINKASSURE (+6.8%), and NEM (+2.0%). On the other hand, the Consumer Goods index was the lone loser, down 2bps due to selling pressure on FLOURMILL (-0.7%).
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“We expect the bullish performance to be sustained in the next trading session, as investors continue to trade on company-specific fundamentals”, analysts.
NGX Edges Higher as Telco, Banks Stocks Drive Rally
