Market Gains N261bn as Banking, Industrial Goods Stocks Enjoy Patronage

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited rebounded by 0.90 per cent on Wednesday on the back of renewed bargain-hunting across the main sectors of the stock market.

An improved investor risk appetite contributed to the return of the bulls to the ecosystem in the midweek session as investors were impressed with the Zenith Bank dividend announcement and the return of Oando to profitability, triggering the demand for the stock.

As a result, Oando topped the gainers’ chart after it chalked up 9.84 per cent to trade at N4.91, Caverton rose by 8.08 per cent to N1.07, Ikeja Hotel appreciated by 7.77 per cent to N1.11, Transcorp improved by 7.14 per cent to N1.50, and Dangote Cement jumped by 5.07 per cent to N290.00.

On the flip side, May & Baker topped the losers’ log after its value went down by 8.70 per cent to N4.20, Consolidated Hallmark Insurance dropped 8.06 per cent to trade at 57 Kobo, RT Briscoe shed 7.69 per cent to quote at 24 Kobo, FTN Cocoa decreased by 7.14 per cent to 26 Kobo, and CAP slumped by 5.79 per cent to N17.90.

Business Post reports that the price movement index revealed that investor sentiment was strong as the market breadth was positive, with 22 appreciating stocks and 14 depreciating shares.

This was buoyed by buying pressure, resulting in the industrial goods, banking, and consumer goods counters closing higher yesterday by 2.69 per cent, 1.97 per cent, and 0.12 per cent, respectively.

However, the insurance space went down by 0.76 per cent, and the energy sector remained unchanged despite the gains posted by Oando.

At the close of business, the All-Share Index (ASI) increased by 479.17 points to 53,603.80 points from 53,124.63 points, and the market capitalisation grew by N261 billion to N29.201 trillion from N28.940 trillion.

Investors were busy in the midweek session, resulting in the activity chart closing in green, with the trading volume, value and the number of deals rising by 16.36 per cent, 56.14 per cent, and 27.19 per cent apiece.

This was because traders exchanged 236.1 million equities worth N3.3 billion in 3,906 deals compared with the 202.9 million equities worth N2.1 billion traded in 3,071 deals on Tuesday.

Transcorp was the most active stock as it traded 91.4 million units, Zenith Bank transacted 27.1 million units, GTCO exchanged 22.1 million units, UBA sold 16.6 million units, and Sterling Bank traded 12.0 million units.