Stock Market Rises N108.5 Billion on Improved Sentiment
The Nigerian stock market rises N108.5 billion on Thursday as Investors sentiment improved following financial year 2020 earnings releases.
Today, the domestic equities market maintained positive momentum as the All-Share Index rose 53 basis points bps to 39,293.14 points.
The gain was however driven from strong buying interest in STANBIC (+9.2%), MTNN (+1.2%), and GUARANTY (+0.5%).
Then, year to date loss improved to -2.4% and investors gained ₦108.5 billion, thus pushed market capitalisation to ₦20.6 trillion.
It was noted that trading activity waned as volume and value declined 36.6% and 33.7% respectively to 229.4 million units and ₦3.8 billion.
The most traded stocks by volume were UBN (79.6 million units), GUARANTY (19.3 million units), and ZENITH (12.1 million units).
Meanwhile MTNN (₦1.6 billion), GUARANTY (₦599.0 million) and ZENITH (₦421.7 million) led by value.
Afrinvest said performance across sectors under its coverage was bullish as four indicators trended northward as revealed by market data on Thursday.
Data shows that the Insurance index led the gainers, up 0.8% due to price appreciation in WAPIC (+10.0%) and AFRINSURE (+5.0%).
Similarly, the Banking and AFR-ICT indices rose 0.6% apiece on account of buying interest in STANBIC (+9.2%), GUARANTY (+0.5%) and MTNN (+1.2%).
It was noted that gains in WAPCO (+1.2%) drove the Industrial Goods index up by 7 basis points.
On the flip side, sell-offs in OANDO (-0.6%) and DANGSUGAR (-2.7%) dragged the Oil & Gas and Consumer Goods indices lower by 5bps and 24bps respectively.
Investor sentiment, as measured by market breadth, strengthened to 1.9x from the 1.3x recorded previously as 23 stocks gained against 12 decliners.
WAPIC (+10.0%), UPDCREIT (+9.8%) and PHARMDEKO (+9.6%) were the top gainers while SOVRENINS (-8.3%), NPFMCRFBK (-7.2%) and PRESTIGE (-6.8%) were the top decliners.
“In the subsequent trading session, we anticipate profit-taking in the bourse”, Afrinvest said.