Stocks Edge Higher as Market Sentiment Improves

Stocks Edge Higher as Market Sentiment Improves

Stocks edge higher first trading day in the week as investors sentiments improve after inflation slowdown ruffle potential steep rise in yields in the fixed income space.

The renewed buying interest saw that the Nigerian Exchange (NGX) All-share index (ASI) inched higher marginally by 0.01 per cent. Stocks appreciated by N2.8 billion as market capitalisation printed at N19.773 trillion.

Atlass Portfolios analysts call the market tepid with positive sentiments printed on the bourse by tickers like GTCO, CHIPLC, MANSARD, LIVESTOCK, VITAFOAM, HONEYWELL, WEMA, ETERNA, and others.

Nigerian Exchange data shows that market breadth closed positive with 22 gainers versus 10 laggards. The volume of stocks traded appreciated by 73.50 per cent while the value of stocks traded declined by 60.59 per cent.

A total of 462.80 million units of shares valued at N1.19 billion, were traded in 3,610 deals.

JAIZBANK led the volume chart, accounting for 46.92 per cent of the total volume of trades, followed by STERLNBANK (16.90%) WEMA (4.16%) SOVRENINS (2.77%), and UNIVINSURE (4.37%) to complete the top five on the volume chart.

Meanwhile, NB led the value chart accounting for 11.62 per cent of the total value of trade on the exchange.

ETERNA, UPL, and CUTIX topped the gainers’ chart, with their share prices advancing by 10.00 per cent, 9.93 per cent, and 9.92 per cent, respectively. While FTNCOCOA led the losers’ table with its share price depreciating by 7.32 per cent to close at N0.41 after opening the day at N0.38.

Afrinvest said in an email sent to clients that performance across sectors under its coverage was bullish as 4 indices gained, the Banking index lost while the AFR-ICT index closed flat.

The Insurance and Oil & Gas indices led the gainers, up 1.2% and 0.3%, respectively, driven largely by price appreciation in MANSARD (+2.3%), MBENEFIT (+5.3%), and ETERNA (+10.0%).

In the same vein, the Consumer and Industrial Goods indices inched higher by 10bps and 1bp, respectively, due to buying interests in HONEYFLOUR (+6.8%) and VITAFOAM (+2.3%).

Investors sentiment, as measured by market breadth (advance/decline ratio), strengthened to 2.4x from 0.8x recorded in the last trading session.

Read Also: Interbank Rates Fall as Financial System Liquidity Improves

On the flip side, the Banking index slid by 40bps on the back of sell-offs in UBN (-2.7%), FBNH (-0.7%), and STERLNBANK (-3.2%).

“We expect the market to resume trading post-Sallah holidays on a positive note, to be driven by high system liquidity and positive earnings expectation,” Afrinvest said.

Stocks Edge Higher as Market Sentiment Improves