NGX Rises 0.89% as Disappointed T-Bills Investors Flood Stock Market

January 14, 2023
disappointed T-bills investors

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited rallied by 0.89 per cent on Friday following significant interest shown in financial and energy equities during the session.

Business Post observed that investors had run back to the stock market after the Central Bank of Nigeria (CBN) broke their hearts by slicing treasury bills’ rates across all tenors at the last exercise held on Wednesday.

The disappointed T-bills investors turned to the equity market, where they can get quick gains higher than what asset class (treasury bills) can offer them if they play their cards very well.

The NGX welcomed them with open arms, and at the close of business yesterday, the All-Share Index (ASI) rose by 463.63 points to 52,512.48 points from 52,048.85 points, and the market capitalisation grew by N252 billion to N28.602 trillion from N28.350 trillion.

During the session, the energy space gained 2.64 per cent, the insurance sector appreciated by 1.53 per cent, the banking counter rose by 1.50 per cent, the industrial goods index went up by 0.09 per cent, while the consumer goods sector depreciated by 0.18 per cent.

The market breadth remained positive at the close of transactions as there were 36 price gains and 12 price losers, indicating a very strong investor sentiment.

Three shares appreciated by a maximum of 10.00 per cent yesterday, and they were Berger Paints, TotalEnergies, and Linkage Assurance, trading at N6.60, N212.30, and 44 Kobo, respectively. Thomas Wyatt appreciated by 9.63 per cent to N1.48, and Prestige Assurance increased by 9.52 per cent to 46 Kobo.

On the flip side, Lasaco Assurance lost 10.00 per cent to quote at 99 Kobo, CWG depreciated by 9.52 per cent to 95 Kobo, Chellarams dropped 9.46 per cent to N1.34, Royal Exchange fell by 7.14 per cent to 91 Kobo, and Fidson declined by 4.60 per cent to N9.34.

On the final trading session of the week, Zenith Bank was the most traded stock, selling 20.3 million units, followed by GTCO, which traded 18.2 million. UBA transacted 17.2 million stocks, Sterling Bank exchanged 15.8 million equities, and Transcorp sold 11.7 million shares.

Data showed that investors bought and sold 217.2 million stocks worth N2.6 billion in 4,591 deals compared with the 211.7 million stocks worth N7.7 billion transacted in 3,462 deals on Thursday, representing a 2.60 per cent increase in the trading volume, a 32.61 per cent rise in the number of deals, and a 66.23 per cent fall in the trading value.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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