NGX Rises by N174bn as MTNN, Zenith Bank Rally
The equities segment of the Nigerian Exchange (NGX) limited appreciates by about N174 billion on Thursday as telecom, and banking stock became more popular among value hunters for positioning ahead of earnings releases.
A similar buying interest was also seen in the fixed income market space, the twin rally which some market analysts attribute to a strong liquidity glut in the local economy.
Trading data from the local bourse indicates that the Nigerian Exchange All-share index (NGX-ASI) inched upward by 0.6% after gains in large-cap listed companies’ stocks. >>Money Market Rates Sink as Liquidity Improves
Buying interest in MTN Nigeria shares pushed the telecom company’s market price up by 2.3%. ZENITH advanced by 2.9% while GTCO popped by 2.1% despite N5 billion fine slam on its UK subsidiary.
The upbeat market performance lifted the NGX-ASI higher by 0.6% to 52,048.85 points, data from the local bourse show. With the sustained buying temperature that started on the first trading day of the year, the market return improved to 1.6% from 0.9%.
Meanwhile, activity levels dampened as volume and value traded fell 24.9% and 5.3% respectively to 211.7 million units and ₦7.7 billion. In a market report, Stockbrokers at Afrinvest said performance across sectors was bullish as all 6 indices gained today.
The Banking and Consumer Goods indices topped the gainers, up 2.2% and 0.7% respectively due to price appreciation in ZENITH (+2.9%), ETI (+3.5%), DANGSUGAR (+7.2%), and INTBREW (+8.6%).
Similarly, the AFR-ICT and Insurance indices rose 0.6% apiece buoyed by a 2.3% gain in MTNN and 1.6% share appreciation in AIICO in addition to a 10% capped daily gain in LASACO.
Trailing, the Oil & Gas and Industrial Goods indices expanded by 0.5% and 0.2% sequentially on account of buying interest in ARDOVA (+5.6%) and WAPCO (+3.5%). Investor sentiment, as measured by market breadth, improved to 0.40x from 0.20x recorded in the previous trading session as 35 stocks advanced, 9 declined and 62 closed flat.
Projecting, Afrinvest said it expects the bullish run to be sustained on account of improved investor sentiment. Overall, equities market capitalisation advanced by ₦173.7 billion to ₦28.3 trillion. # NGX Rises by N174bn as MTNN, Zenith Bank Rally
