NGX Swells by N85bn as Mecure Lists 4bn Shares
The equities segment of the Nigerian Exchange (NGX) expanded by N85 billion on Tuesday as Mecure Industries listed four billion ordinary shares at N2.96. The stock market has been spinning value as Alpha seekers continue to take positions in growth, value companies stocks.
The sustained uptrend has been supported by a healthy earnings festival for the third quarter of the financial year 2023. The sustained Bull Run kept the local bourse in high spirit as excitement from capital appreciations drove positive sentiment.
Data from the exchange showed that market performance indicators grew by +0.19%, while year-to-date return advanced further amidst the expectation of a higher inflation rate for October 2023.
According to data from the Lagos bourse, year-to-date return accelerated to 37.78%, far ahead of an annual inflation rate of 26.72%. This is coming despite the ongoing yield surge in the fixed income market.
On Tuesday, the equities market index or the Nigerian Exchange All-Share Index increased by 133.98 basis points, representing an increase of +0.19% to close at 70,613.60, Atlass Portfolios Limited said in its update.
While stockbrokers recognise an increase in market capitalisation, they attribute today’s surge to the difference in the listing of MeCure Industries Plc’s 4,000,000,000 ordinary shares at ₦2.96 per share on the Exchange.
A review of performance showed that stock market activities ended on a mixed note. The total volume traded for increased by +14.90%. Meanwhile, the total value traded reduced by -29.34%.
Citing data from the exchange, Atlass Portfolios Limited told investors that approximately 449.28 million units valued at ₦5,444.88 million were transacted in 7,100 deals.
FBNH was the most traded stock in terms of volume, accounting for 11.59% of the total volume of trades, stockbrokers said in their separate market updates.
Nigeria’s oldest lender was followed by CHIPLC (11.03%), FIDELITYBK (9.36%), UBA (9.24%), and JAPAULGOLD (8.26%) to complete the top 5 on the volume chart.
With the size advantage, FBNH was also the most traded stock in value terms, with 18.89% of the total value of trades on the exchange.
PZ topped the advancers’ chart with a price appreciation of 10.00 per cent, trailed by GLAXOSMITH (9.93%), DAARCOMM (+9.52%), JAPAULGOLD (+9.35%), INTBREW (+8.43%), and seventeen others.
Twenty-five stocks depreciated, according to data from the Nigerian Exchange. NNFM was the top loser, with a price depreciation of -10.00%. The company was trailed by losses in ROYALEX (-9.26%), ETERNA (-8.62%), NEIMETH (-7.65%), CADBURY (-4.00%), and ZENITHBANK (-0.89%).
Based on the trading pattern, the market breadth closed negative, recording 22 gainers and 25 losers.
On the other hand, the market sector performance was positive, as three of the five major market sectors advanced. The Consumer goods sector grew by (+0.15%), followed by the Insurance sector (+0.15%), and the Industrial sector (+0.03%). The Oil & Gas sector dropped by -0.27%. The Banking sector closed unchanged.
Overall, equities market capitalisation increased by ₦85.46 billion, representing a growth of +0.22%, to close at ₦38.80 trillion from ₦38.71 trillion yesterday. #NGX Swells by N85bn as Mecure Lists 4bn Shares Naira Steadies as Banks Issue Update on FX Purchase