Following investors’ appetite for some high-capitalised stocks, the Nigerian stock market reversed previous losses to close on an upward note yesterday, as market capitalisation appreciated by N24 billion.
Specifically, at the close of transactions yesterday, the market capitalisation of the Nigerian Exchange Limited (NGX) rose by N24 billion from N20.582 trillion recorded on Monday to N20.606 trillion. Similarly, the All-share index appreciated by 44.96 points or 0.1 per cent from 39,505.40 points to 39, 550.36 points.
Analysts at Investdata Consulting Limited said: “We note that some stocks are trading within their buy ranges to become more attractive at this point for income investors and traders, even as the market anticipates positive news, while oil price continues to oscillate above $68pb to support the global economy and stock market recovery across climates.”
Analysts at Afrinvest Limited said: “Given the latest moderation in inflation numbers, we expect to buy sentiment to dominate tomorrow’s trading as investors re-price risk on equity assets.”
The market’s positive performance was driven by price appreciation in large and medium capitalised stocks which are Dangote Cement, Honeywell Flour Mills, UAC of Nigeria (UACN), Pharma-Deko, and Neimeth International Pharmaceuticals.
Furthermore, the market breadth closed at par, recording 16 gainers and 16 losers. Honeywell Flour Mills recorded a gain of 9.78 per cent to close at N2.47 while Pharm Deko followed with a gain of 9.24 per cent to close at N1.30 kobo.
Wema Bank went up by 3.70 per cent to close at 84 kobo. Neimeth International Pharmaceuticals gained 3.66 per cent to close at N1.70 kobo. Dangote Cement appreciated by 3.31 per cent to close at N249.60 kobo.
On the other hand, SCOA Nigeria led the losers’ chart by 9.74 per cent to close at N1.76 kobo. Nestle Nigeria followed with a decline of 9.09 per cent to close at N1,400.00. FTN Cocoa Processors lost 8.51 per cent to close at 43 kobo, per share.
Consolidated Hallmark Insurance declined by 8.16 per cent to close at 45 kobo while Linkage Assurance shed 6.35 per cent to close at 59 kobo.
The total volume of trades declined by 21.6 per cent to 110.771 million units, valued at N3.084 billion, and exchanged in 3,305 deals. Transactions in the shares of Transnational Corporation of Nigeria (Transcorp) topped the activity chart with 11.940 million shares valued at N11.293 million.
FBN Holdings (FBNH) followed with 11.061 million shares worth N81.323 million, while Oando traded 7.307 million shares valued at N36.378 million.
Access Bank traded 6.190 million shares valued at N56.334 million, while Nigerian Aviation Handling Company (NAHCO) transacted 5.388 million shares worth N14.20 million.