Investors Gain N394bn as Hunt for Fundamentally Strong Stocks Persists

By Dipo Olowookere

The bargain-hunting for fundamentally strong stocks on the floor of the Nigerian Exchange (NGX) Limited expanded investors’ portfolios by 1.10 per cent on Tuesday.

This was because the market capitalisation of Customs Street grew by N394 billion to N35.933 trillion from N35.539 trillion at the close of transactions, as the All-Share Index (ASI) increased by 720.53 points to 65,988.81 points from 65,268.28 points.

The growth printed by the local bourse came despite the Central Bank of Nigeria (CBN) not announcing its rate decision before the close of business like in the past.

The CBN announced the outcome of its two-day Monetary Policy Committee (MPC) meeting yesterday some minutes past 5 pm.

The interest rate was raised by 0.25 per cent to 18.75 per cent. Investors will have to react to this development in the market today.

The domestic stock market was able to maintain its upright posture due to buying pressure on the energy and banking sectors, which grew by 3.25 per cent and 0.45 per cent apiece, offsetting the losses printed by the others.

The industrial goods counter depreciated by 0.14 per cent, the insurance sector went down by 0.06 per cent, and the consumer goods space declined by 0.02 per cent.

Unlike the preceding trading day, investor sentiment was bullish on Tuesday as the bourse ended with 32 appreciating stocks and 30 depreciating stocks, indicating a positive market breadth.

Ikeja Hotel and FTN Cocoa topped the gainers’ log after they grew by 10.00 per cent each to settle at N2.97 and N2.42, respectively, as Seplat gained 9.99 per cent to trade at N1,539.70, SAHCO rose by 9.83 per cent to N19.55, and Japaul increased by 9.78 per cent to N1.01.

On the flip side, Conoil and Learn Africa fell by 10.00 per cent each to N101.25 and N3.69 apiece. John Holt declined by 9.96 per cent to N2.44, Multiverse depleted by 9.88 per cent to N3.01, and Thomas Wyatt slipped by 8.45 per cent to N1.30.

Business Post reports that traders transacted 553.5 million shares valued at N7.4 billion in 8,313 deals yesterday compared with the 831.5 million shares worth N12.9 billion traded in 9,768 deals on Monday, representing a decline in the trading volume, value, and the number of deals by 33.43 per cent, 42.64 per cent, and 14.90 per cent apiece.

This decline in the activity level was largely due to cautious trading as investors awaited the outcome of the MPC meeting, which did not come on time.