Nigerian Exchange Rebounds by 0.22% Despite Weak Sentiment

By Dipo Olowookere

A 0.22 per cent growth was recorded by the Nigerian Exchange (NGX) Limited on Thursday, on the back of renewed bargain-hunting.

This brought a temporary relief to Customs Street, which has been battered by the bears as a result of sustained profit-taking.

The buying pressure witnessed at the bourse yesterday was driven by interest in financial equities, with the banking sector rising by 1.58 per cent, and the insurance space expanding by 0.03 per cent. But the consumer goods index shrank by 0.20 per cent and the energy counter depreciated by 0.07 per cent, while the industrial goods closed flat.

During the session, the All-Share Index (ASI) increased by 473.17 points to 239,156.09 points from 238,682.92 points, and the market capitalisation went up by N305 billion to N154.442 trillion from N154.137 trillion.

Omatek gained 9.60 per cent to close at N1.37, Cornerstone Insurance surged by 9.18 per cent to N5.35, AXA Mansard appreciated by 9.09 per cent to N12.00, Abbey Bank surged by 6.25 per cent to N8.50, and First Holdco climbed by 4.65 per cent to N135.00.

On the flip side, Fidson shed 9.98 per cent to N75.80, Learn Africa declined by 9.84 per cent to N8.70, International Energy Insurance fell by 9.84 per cent to N2.84, DAAR Communications crashed by 8.61 per cent to N1.38, and Legend Internet stumbled by 8.43 per cent to N3.80.

Business Post reports that 39 stocks closed lower and 19 stocks shed weight, indicating a negative market breadth index and weak investor sentiment.

During the trading day, market participants transacted about 500.0 million shares worth N35.2 billion in 40,323 deals versus the 733.4 million shares valued at N34.5 billion traded in 49,210 deals a day earlier. This showed that the value of transactions jumped by 2.03 per cent, while the volume of trades and the number of deals contracted by 31.82 per cent and 18.06 per cent, respectively.

Zenith Bank sold 70.0 million units for N8.2 billion, Access Holdings exchanged 45.4 million units worth N1.3 billion, GTCO traded 37.5 million units valued at N4.8 billion, Sterling Holdings transacted 37.2 million units for N283.0 million, and Coronation Insurance sold 24.3 million units worth N49.4 million.