Stock Market Regains Investors’ Confidence as Index Rises 0.83%

By Dipo Olowookere

A 0.83 per cent appreciation was recorded on Friday by the Nigerian Exchange (NGX) Limited, as investors, who left the market due to panic selling, returned.

The growth posted yesterday by the stock market was the third in a row, a scenario that has not happened in a while at the bourse.

Buying pressure across the key sectors of Customs Street contributed to the rise achieved in the last trading session of this week, with the banking space closing higher by 4.68 per cent.

Business Post reports that the insurance counter appreciated by 0.86 per cent, the consumer goods index improved by 0.76 per cent, and the industrial goods space grew by 0.01 per cent, while the energy sector went down by 1.26 per cent.

When trading activities closed for the day, the All-Share Index (ASI) was up by 824.47 points to 99,587.25 points from 98,762.78 points, and the market capitalisation increased by N466 billion to N56.323 trillion from N55.857 trillion.

Investor sentiment was strong on Friday after a positive market breadth index buoyed by 29 appreciating equities, which outweighed the 20 depreciating equities.

Presco topped the gainers’ group after it chalked up 9.96 per cent to trade at N252.80, Dangote Sugar grew by 9.94 per cent to N47.00, Ellah Lakes appreciated by 9.93 per cent to N3.32, Jaiz Bank advanced by 9.81 per cent to N2.35, and Flour Mills rose by 9.69 per cent to N36.80.

On top of the losers’ log were Conoil and Tantalizers, which fell by 10.00 per cent each to sell at N97.20, and 36 Kobo apiece, McNichols lost 9.52 per cent to quote at N1.14, Linkage Assurance weakened by 9.47 per cent to 86 Kobo, and Guinea Insurance receded by 9.09 per cent to 30 Kobo.

The activity chart showed that Access Holdings was the most active after it transacted 151.8 million stocks worth N2.7 billion, Veritas Kapital traded 49.9 million shares valued at N30.9 million, UBA exchanged 32.9 million equities worth N845.7 million, Universal Insurance sold 27.1 million shares for N9.8 million, and Transcorp traded 21.8 million equities valued at N310.3 million.

At the close of transactions, 446.6 million stocks worth N7.1 billion exchanged hands in 9,297 deals compared with the 665.2 million stocks worth N5.5 billion transacted in 8,446 deals in the preceding session, implying a decline in the trading volume by 32.86 per cent, and a rise in the trading value and number of deals by 29.09 per cent and 10.08 per cent, respectively.