The rally in Nigeria’s stock market continued yesterday as the Nigerian Exchange Limited All-Share Index hits 101,571.11 basis points, surpassing the 100,000 basis points mark.
The NGX All-Share appreciated by nearly three per cent from 98,616.97 basis points to close at 101,571.11basiis points, bringing the Year-to-date gain to 35.84 per cent.
The 35.8 per cent investors return has surpassed inflationary levels in the country and outperforming other indices in the African, European and Middle Eastern markets as tracked by Bloomberg.
Consequently, the overall market N55.58trilliionn, after gaining N1.62trillion or nearly three per cent from N53.967 trillion the stock market opened for trading
Bluechip stocks including Dangote Cement that gained 6.49per cent, BUA Cement that appreciated by 9.98per cent alongside BUA Foods that increased by 5.59per cent kept the market in the green, outweighing selloffs in Tier-1 banks namely, United Bank for Africa that dropped by 0.33per cent, Access Corporation that declined by 1.22per cent and FBN Holdings Plc that tumbled by 0.78per cent.
Investor sentiment, as measured by market breadth closed positive as 35 stocks gained, while 32 lost. Wapic Insurance recorded the highest price gain of 10 per cent to close at 88 kobo, per share. BUA Cement followed with a gain of 9.98 per cent to close at N179.65, while Japaul Gold & Ventures rose by 9.91 per cent to close at N2.55, per share.
University Press appreciated by 9.82 per cent to close at N3.69, while Tripple Gee & Company rose by 9.69 per cent to close at N2.83, per share. On the other hand, NEM Insurance led the losers’ chart by 10 per cent to close at N7.20, per share.
Cadbury Nigeria followed with a decline of 9.96 per cent to close at N23.50, while The Initiates Plc (TIP) declined by 9.92 per cent to close at N2.27, per share. May & Baker Nigeria shed 9.89 per cent to close at N6.65, while McNichols lost 9.88 per cent to close at N1.46, per share.
A total value of stocks traded by investors was N8.04trillion, a 51 per cent drop from the value traded in the previous day.
Leading conglomerate, Transnational Corporation Plc was the most liquid stock on NGX as investors exchanged N1.6trillion worth of its stock in 1,207 deals on Wednesday. BUA Cement, Dangote Cement, United Bank for Africa and Zenith Bank also formed part of the top 5 traded stocks by volume.
According to analysts and industry watchers, all eyes are now on the Central Bank of Nigeria as it plans to hold its first Monetary Policy Committee meeting where it is expected that the apex bank may raise the benchmark interest rate by as much as five per cent
This also comes as the CBN Governor, Dr Olayemi Cardoso says the naira is undervalued in the foreign currency markets, according to Bloomberg. Some market participants are of the view that this could be one of the reasons for the surge in the equity markets as investors chase higher returns than the yields offered in fixed income and also, protect their investments from inflation and currency devaluation.
Other performing stocks on NGX are Coronation insurance (10per cent), Japaul Gold & Ventures (9.98 per cent), UPL, (9.82 per cent) and Tripple Gee (9.69 per cent).
The stock market performance also coincides with the change in management at the Nigerian Exchange Group, with the appointment of Temi Popoola as Group Managing Director/Chief Executive Officer, and Jude Chiemeka as Acting CEO of NGX, its operating exchange subsidiary.
