Local Stocks Sustain Growth by 0.81% Amid Weak Investor Sentiment

By Dipo Olowookere

The positive momentum witnessed in the Nigerian Exchange (NGX) Limited continued on Thursday, though with signs that it may soon come to an end.

At the market yesterday, local stocks gained 0.81 per cent due to the sterling performance of a few equities like Airtel Africa, Nigerian Breweries, and BUA Foods.

Business Post reports that investor sentiment was weak during the session due to profit-taking across the key sectors of the exchange, with the energy, banking, consumer goods, industrial goods, and insurance counters declining by 1.86 per cent, 1.37 per cent, 0.42 per cent, 0.38 per cent, and 0.12 per cent apiece.

However, the All-Share Index (ASI) rose by 372.57 points to 46,604.94 points from 46,232.37 points, and the market capitalisation increased by N203 billion to N25.385 trillion from N25.182 trillion.

The market breadth ended negative on Thursday as a result of the 23 price losers and 11 price gainers recorded at the close of transactions.

Axa Mansard finished on top of the risers’ table, with a price appreciation of 8.57 per cent to settle at N1.90, and was trailed by Nigerian Breweries, which improved by 6.79 per cent to N48.00. Ecobank rose by 6.50 per cent to N10.65, Airtel Africa expanded by 6.30 per cent to N1,350.00, and BUA Foods gained 6.11 per cent to trade at N63.40.

Conversely, Red Star Express ended the session on top of the decliners’ chart after it lost 10.00 per cent to close at N2.07, Nestle Nigeria also fell by 10.00 per cent to quote at N1,071.00, CWG dropped 9.09 per cent to 80 Kobo, Lafarge Africa declined by 6.22 per cent to N21.10, and International Breweries depleted by 5.38 per cent to N4.40.

Yesterday, a total of 138.6 million equities valued at N2.2 billion exchanged hands in 3,434 deals, in contrast to the 187.9 million equities valued at N1.8 billion traded in 3,458 deals, representing an increase in the trading value by 17.84 per cent, a reduction in the trading volume by 26.24 per cent, and a fall in the number of deals by 0.69 per cent.

The most active stock on Thursday was Sterling Bank, as it sold 24.3 million units. Transcorp traded 21.8 million units, Ecobank exchanged 10.6 million units, Access Holdings traded 8.6 million units, and Jaiz Bank transacted 7.7 million units.