By Dipo Olowookere
A 1.31 per cent growth was printed by the Nigerian Exchange (NGX) Limited on Tuesday on the back of sustained bargain-hunting as investors locked more funds in local stocks.
Traders shrugged off the stubborn inflation and a further upward adjustment to the price of premium motor spirit (PMS), otherwise known as petrol, by the Nigerian National Petroleum Company (NNPC) Limited yesterday.
According to the latest development, the product will now be dispensed at NNPC retail stations at N617 per litre, a move officials of the company said was necessitated by prevailing market conditions.
Despite the uproar generated by the increase in pump price, the stock market closed higher as traders looked to earn more from the asset class.
The buying pressure popped the All-Share Index (ASI) higher by 823.37 points to 63,766.72 points from 62,943.35 points and inflated the market capitalisation by N449 billion to N34.722 trillion from N34.273 trillion.
Business Post observed that investors tried to book profit in banking equities, but this did not affect the general outcome of the market. The banking index shed 0.17 per cent but was offset by the gains posted by others.
At the close of business, the insurance sector grew by 4.25 per cent, the industrial goods counter appreciated by 3.58 per cent, the consumer goods industry rose by 0.66 per cent, and the energy index expanded by 0.56 per cent.
A total of 50 shares appreciated in price during the session, while 23 stocks depreciated in value, indicating a positive market breadth index and a strong investor sentiment.
Honeywell Flour, NEM Insurance, and NPF Microfinance Bank improved by 10.00 per cent to N3.30, N5.94, and N1.87, respectively, while Eterna gained 9.92 per cent to settle at N26.05, and PZ Cussons increased by 9.88 per cent to N17.80.
On the other side of the coin, Japaul lost 10.00 per cent to quote at 81 Kobo, FTN Cocoa depreciated by 9.84 per cent to N2.29, Courteville decreased by 8.64 per cent to 74 Kobo, Sovereign Trust Insurance dropped 8.16 per cent to 45 Kobo, and Secure Electronic Technology shed 8.11 per cent to 34 Kobo.
Yesterday, traders bought and sold 868.8 million shares worth N43.8 billion in 8,970 deals compared with the 710.0 million shares valued at N13.8 billion traded in 8,979 deals on Monday, implying a decline in the number of deals by 0.10 per cent, and an increase in the trading volume and value by 22.37 per cent and 210.15 per cent apiece.
FCMB traded 153.9 million stocks valued at N956.1 million, Japaul transacted 110.5 million equities worth N91.0 million, Dangote Cement exchanged 104.9 million shares valued at N35.8 billion, Access Holdings sold 49.5 million stocks for N849.2 million, and Fidelity Bank traded 41.9 million equities valued at N312.6 million.
