Nigerian Exchange Surges N1.36trn as ‘FOMO’ Boosts Rally

Nigerian Exchange Surges N1.36trn as ‘FOMO’ Boosts Rally

Nigerian Exchange (NGX) expanded further on Tuesday, with investors gaining N1.36 trillion as pension funds continued to flood the local bourse.

Investors are taking positions on fear of missing out (FOMO) from the monster rally that pushed market capitalisation to N161.6 trillion.  The NGX All-share index (ASI) and market capitalisation gained 0.67%, settling at 252,158.23 points and N161.6 trillion, respectively.

The bullish close was buoyed by price upticks in ARADEL (+6.89%), NB (+9.94%), and FIRSTHOLDCO (+5.97%). Market breadth also reflected bullish sentiment, printing at 1.30x, as 43 gainers outweighed 33 laggards.

Overall, IKEJAHOTEL (+10.00%) and UPL (+10.00%) topped the gainers’ chart, while FTGINSURE (-9.65%) led the laggards. Activity metrics improved, with total volume and value traded increasing by 36.5% and 28.1%, respectively, to 2.0 billion units and N87.7 billion.

UBA led the volume chart with 207.1 million units (10.2% of total volume), while ARADEL led the value chart with trades worth N10.5 billion (12.0% of total value).

Stockbrokers reported that sectoral performance ended on a broadly bullish note, with four indices posting gains in today’s session. The Oil & Gas (+3.40%) and Commodity (+2.31%) indices closed higher today, both driven by buying interest in ARADEL (+6.89%).

The Banking (+1.87%) and Consumer Goods (+1.71%) indices followed suit, supported by gains in FIRSTHOLDCO (+5.97%) and NB (+9.94%), respectively. 

On the other hand, the Industrial Goods (-0.49%) and Insurance (-1.40%) indices closed lower, reflecting price declines in BUACEMENT (-1.16%) and AIICO (-7.74%), respectively.

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