Nigerian Exchange Rally as Investors Gain N59 Billion

Nigerian Exchange Rally as Investors Gain N59 Billion

The Nigerian Exchange, NGX, rally on Wednesday as equities investors gain N59 billion amidst Debt Management Office bond auction in the fixed income segment.

The Federal Government of Nigeria (FGN), through the Debt Management Office (DMO), conducts a primary market bond auction, seeking to raise up to NGN150 billion via three (3) instruments which are re-openings

For third consecutive trading session in the week, the local bourse extended gains as a result of price appreciation in GUARANTY (+4.2%), WAPCO (+6.8%), and UBN (+5.3%).

Accordingly, the All-Share index rose 29 basis points (bps) to close at 39,128.34 points, as year to date loss moderated to -2.8%.

Meanwhile, the Nigerian Exchange saw its market capitalisation increased to ₦20.5 trillion. Though, trading activity declined as volume and value traded fell 29.4% and 38.5% respectively to 239.2 million units and ₦1.7 billion.

The most traded stocks by volume were ACCESS (28.2 million units), FIDELITY (17.2 million units), and MBENEFIT (16.8 million units) while GUARANTY (₦423.1 billion), ZENITH (₦276.7 million), and ACCESS (₦213.2 million) led by value.

Mixed Sector Performance

Afrinvest said performance was mixed as 3 of the 6 sectors under its coverage indicators closed in the green.  Specifically, the Banking index led gainers, up 2.3% due to price appreciation in GUARANTY (+4.2%), UBN (+5.3%), and UBA (+2.1%).

Similarly, the Industrial Goods and Oil & Gas indices rose 0.4% and 0.3% respectively due to buying interest in WAPCO (+6.8%), CONOIL (+10.0%), and ETERNA (+9.5%).

Conversely, the Insurance and Consumer Goods indices declined 1.3% and 0.4% respectively as investors exited position in NEM (-7.0%), LINKASSURE (-4.8%), GUINNESS (-9.9%) and INTBREW (-0.9%). Finally, the AFR-ICT index closed flat.

Investor Sentiment Weakens

Analysts said investor sentiment, as measured by market breadth weakened to 1.0x from the 2.0x recorded in the previous session as 22 stocks advanced against 21 decliners.

CONOIL (+10.0%), STUDPRESS (+9.9%) and ETERNA (+9.5%) were the top gainers while GUINNESS (-9.9%), PORTPAINT (-9.8%) and ACADEMY (-9.8%) were the top decliners.

Read Also: NGX Gains N20.9 Billion on Improved Investors Sentiment

“In the next trading session, we expect the stock market to sustain its positive momentum”, Afrinvest said in a report.

Nigerian Exchange Rally as Investors Gain N59 Billion