The stock market of the Nigerian Exchange Limited (NGX) on Monday opened the week positive as the capitalisation advanced by N257 billion.
The All Share Index (ASI) rose by 470.74 points, representing an increase of 0.92 per cent to close at 51,693.08 points. While the overall market capitalisation value gained N257 billion to close at N28.156 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Airtel Africa, Nigerian Breweries, United Capital, Nigerian Exchange Group (NGXGroup) and Africa Prudential.
Looking into the week, United Capital Plc expected the bears to resume activities across counters, as we anticipate further spread across other sectors as investors book profits from the extended rally.
According to United Capital, the central Bank of Nigeria’s recent Cash Reserve Ratio (CRR) debits in the money market will likely discourage investors from sustaining investment in equities in the short-term as they hope for improvement in money market yields.
“However, we see any downturn as a short-term buying opportunity as we expect investors’ risk-on sentiments will linger through Q1,2023, favouring the equities market, as the prevailing downward pressure interest rates will persist through the quarter.”
Market sentiment, as measured by market breadth was positive as 18 stocks gained, relative to 16 losers. Thomas Wyatt Nigeria recorded the highest price gain of 9.28 per cent to close at N1.06, per share. Associated Bus Company followed with a gain 8.00 per cent to close at 27 kobo, while Royal Exchange rose by 5.88 per cent to close at N1.08, per share.
Airtel Africa went up by 5.16 per cent to close at N1,630.00, while consolidated Hallmark Insurance appreciated by 5.00 per cent to close at 63 kobo, per share. On the other hand, Union Bank of Nigeria (UBN) led the losers’ chart by 8.63 per cent to close at N6.35, per share. Wema Bank followed with a decline of 8.21 per cent to close at N3.58, while AIICO Insurance depreciated by 6.25 per cent to close at 60 kobo, per share.
Caverton Offshore Support Group declined by 4.95 per cent to close at 96 kobo, while Stanbic IBTC Holdings depreciated by 4.33 per cent to close at N32.00, per share.
Also, the total volume of trades rose by 17.10 per cent to 229.219 million units, valued at N2.908 billion, and exchanged in 3,900 deals. Transactions in the shares of Sterling Bank topped the activity chart with 85.178 million shares valued at N119.255 million. United Bank for Africa (UBA) followed with 21.623 million shares worth N173.308 million, while FBN Holdings (FBNH) traded 20.091 million shares valued at N222.860 million.
Access Holdings traded 10.325 million shares valued at N95.528 million, while Zenith Bank transacted 8.292 million shares worth N202.481 million.