NGX Gains N250bn as BUA Foods, Dangote Sugar Rally
The Nigerian Exchange (NGX) rallied on Monday after closing negative last week. As a result of fresh interest in the consumer goods sector, market capitalisation rose by #250 billion. Reversing a negative trend, the equities market resumed the week’s trading on a positive note. The uptrend was supported by bargain-hunting activities in BUAFOODS (+9.3%) – one of the NGX market movers.
Driving the momentum, stockbrokers saw equities investors’ renewed interest in BUA Foods, and Dangote Sugar PLC among other growth stocks. Transcorp recorded a spike in trading activities, which lifted its market price. There was buying interest in WAPCO following a bucket of buying ratings from Broadstreet analysts. Stock buyers also take a position in UBA ahead of the earnings release.
As a result of the bullish activities, the Nigerian Exchange All-Share Index advanced by 0.7% to 65,202.41 points. This pushed year-to-date return higher, closing at 27.2%, still ahead of the annual inflation rate of 24.08%. The total volume traded dipped by 56.9% to 231.60 million units, valued at N3.99 billion, and exchanged in 5,494 deals. TRANSCORP was the most traded stock by volume at 36.84 million units, while MTNN was the most traded stock by value at N1.45 billion.
Investors picked up shares of BUAFOODS (+9.29%), TRANSCORP (+5.29%), DANGSUGAR (+2.86%), WAPCO (+0.73%), and UBA (+0.72%) at higher prices today. On sectors, the Consumer Goods (+5.0%) and Insurance (+0.4%) indices printed gains, while the Oil & Gas (-0.7%) and Banking (-0.4%) declined. Meanwhile, the Industrial Goods index closed flat.
As measured by market breadth, market sentiment was positive (2.1x), as 31 tickers gained relative to 15 losers. JOHNHOLT (+9.7%) and SCOA (+9.4%) recorded the most significant gains of the day, while TANTALIZER (-10.0%) and OMATEK (-9.1%) topped the losers’ list.
Overall, equities market capitalization rose by ₦250.00 billion, representing a growth of +0.71%, to close at ₦35,684.83 trillion from ₦35,435 last Friday In the forex market, the naira struggled to keep the previous week’s rally. The local currency depreciated by 2.9% to N761.32 at the Investors and Exporters FX Window due to weak supply side. #NGX Gains N250bn as BUA Foods, Dangote Sugar Rally
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