Large cap stocks drive NGX beyond 100,000 points, market cap hits N56trn

The rally in Nigeria’s equity market continues as the All-Share Index of Nigerian Exchange Limited (NGX) hit 101,571.11 basis points, surpassing the 100,000 mark just as the market capitalization hit N55.58trilliionn.

Bluechip stocks including Dangote Cement, BUA Cement, BUA Foods continue to drive major gains seen on the Exchange.

Year-to-date, the domestic market has returned 35.84per cent surpassing inflationary levels in the country and outperforming other indices in the African, European and Middle Eastern markets as tracked by Bloomberg. 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 N1.6tn 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 (10%), Japaul Gold & Ventures (9.98 per cent), UPL, (9.82 per cent) and Tripple Gee (9.69 per cent).

The equity 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.

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