Market Further Rises 1.65% as Nigerian Stocks Beat Inflation

By Dipo Olowookere

Nigerian stocks continued their upward movement on Tuesday, gaining 1.65 per cent due to sustained demand for cement equities, especially Dangote Cement, which is having its share buyback scheme.

Business Post reports that on a year-to-date basis, the Nigerian Exchange (NGX) Limited has gained 28.13 per cent, outperforming inflation currently at 22.41 per cent.

The June inflation is expected to be released by the National Bureau of Statistics (NBS) on Monday, July 17, 2023, instead of Saturday, July 15, 2023.

Yesterday, the All-Share Index (ASI) increased by 1,065.60 points to 65,669.29 points from 64,603.69 points, as the market capitalisation rose by N581 billion to N35.758 trillion from N35.177 trillion.

During the session, a total of 844.7 million stocks worth N9.4 billion were traded in 8,922 deals by investors compared with the 1.8 billion stocks worth N22.0 billion traded in 14,584 deals on Monday, representing a decline in the trading volume, value, and the number of deals by 54.07 per cent, 57.27 per cent, and 38.82 per cent, respectively.

Chams was the most traded equity yesterday as it sold 91.7 million units valued at N117.2 million, FCMB exchanged 78.7 million units worth N551.9 million, Universal Insurance traded 75.0 million units valued at N23.0 million, UBA transacted 55.1 million units for N795.3 million, and Transcorp sold 51.2 million units worth N245.1 million.

A pocket of profit-taking happened on Tuesday at the stock market, though the appetite for Dangote Cement and BUA Cement offset the losses in other sectors.

The banking space lost 3.10 per cent, the insurance sector depreciated by 2.41 per cent, and the consumer goods index went down by 0.43 per cent. But the industrial goods counter grew by 7.48 per cent and the energy sector rose by 0.73 per cent.

Investor sentiment was slightly bullish yesterday after the local bourse ended with 38 appreciating shares and 33 depreciating shares, indicating a positive market breadth index.

Sovereign Trust Insurance, Omatek, Chellarams, FTN Cocoa, and Transcorp Hotels improved their share prices by 10.00 per cent each to 55 Kobo, 66 Kobo, N1.76, N3.85, and N39.50 apiece.

But Consolidated Hallmark Insurance depreciated by 10.00 per cent to N1.17, Champion Breweries went down by 9.89 per cent to N3.92, McNichols shed 9.33 per cent to 68 Kobo, PZ Cussons depleted by 9.32 per cent to N19.95, and UPDC REIT slumped by 9.21 per cent to N3.45.