Stock Market Loss Moderated as Investors Gain N59.4 Billion
Stock market loss moderated on Monday as investors gain N59.4 billion on price appreciation in Zenith Bank stock which gained 3.6%, Guaranty jumped 2.6% and WAPCO increased 2.2%.
The strong buying interest on big names lifted the All-Share index, rising by 29 basis points to close at 39,312.74 points. Consequently, year-to-date loss moderated to -2.4% while market capitalisation jumped ₦59.4 billion to ₦20.5 trillion.
The key driver of the rally was an improvement in trading activities as volume and value traded rose 35.7% and 11.1% to 324.2 million units and ₦3.3 billion respectively.
The most traded stocks by volume were ETRANZACT (72.2 million units), Zenith (44.0 million units), and Access bank (23.0 million units).
Meanwhile, Zenith Bank share traded worth ₦1.0 billion, followed by BUACEMENT ₦513.0 million, and Guaranty did ₦341.8 million led by value.
Mixed Sector Performance
Afrinvest said performance across sectors under its overage was mixed as 3 indicators gained, 2 lost while the AFR-ICT index closed flat.
The NSE Insurance, NSE banking, and NSE industrial goods indices closed positive, rising by 133 basis points (bps), 289bps, and 8bps.
These offset the loss recorded in the NSE consumer goods index which dipped by 26bps. The NSE oil & gas index closed flat.
Investor Sentiment Strengthens
Investor sentiment as measured by market breadth strengthened to 1.9x from the 1.3x recorded in the previous session as 28 stocks advanced while 15 declined.
On today’s price list, ABCTRANS (+9.68% to N0.34), REGALINS (+9.68% to N0.34), and UBN (+9.26% to N5.90) were today’s top gaining stocks.
On the flip side, UNITYBNK (-8.33% to N0.55), JAPAULGOLD (-6.67% to N0.56), and NEIMETH (-6.04% to N1.71) were today’s top losers.
“We expect the positive sentiment to be sustained in the next trading session, as investors continue to take advantage of the recent price correction in the market”, Afrinvest stated.
Chapel Hill Denham said for the rest of the week, arguments for sell-offs are numerous.
“We guide that the blend of elevated inflationary pressure, together with the widened FX parallel market spread, are key factors that will likely drive CBN’s hawkish bias in the coming MPC meeting, a development that connotes negative implication for equities.
“Still, our investment thesis is that investors should position in stocks with attractive fundamental names. In fact, Nigerian equities remain cheap relative to peers on a forward price-earnings ratio basis”, it added.
Nigerian Exchange Rally as Investors Gain N59 Billion
Stock Market Loss Moderated as Investors Gain N59.4 Billion
