Nigerian Equities Rebound by 0.12% on Renewed Buying Interests

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited made a return to the bulls’ territory on Wednesday after staying with the bears for five consecutive trading sessions.

Business Post reports that Nigerian equities closed 0.12 per cent higher in the midweek session despite the disruption caused to the economy by the protesting labour unions in the country.

It was observed that investors showed renewed buying interests after they confirmed that the Senate and President Bola Tinubu held talks with the workers, giving them hope that the demonstrations may not linger on as earlier feared.

This may have helped investor sentiment, which was slightly firm yesterday as the bourse finished with 31 price gainers and 26 price losers, indicating a positive market breadth index.

Consequently, the All-Share Index (ASI) went up by 75.16 points to 64,267.36 points from 64,192.20 points, and the market capitalisation expanded by N41 billion to N34.973 trillion from N34.932 trillion.

The growth achieved during the trading day was buoyed by the 0.22 per cent increase in the industrial goods space, the 0.16 per cent rise in the consumer goods counter and the 0.04 per cent gain in the insurance sector, offsetting the 0.35 per cent loss printed by the banking index. The energy sector closed flat.

NASCON, Chams, and Abbey Mortgage Bank improved by 10.00 per cent on Wednesday to N35.75, 99 Kobo, and N1.21 apiece, as SAHCO rose by 9.96 per cent to N28.15 and Dangote Sugar soared by 9.93 per cent to N32.65.

Conversely, The Initiates and Thomas Wyatt lost 10.00 per cent each to trade at 72 Kobo and N1.17, respectively, University Press shed 9..78 per cent to N2.49, Omatek depleted by 9.76 per cent to 37 Kobo, and John Holt declined by 9.44 per cent to N1.63.

The activity chart was in red yesterday as investors were still cautious of happenings in the country, resulting in the sale of 330.8 million stocks worth N4.3 billion in 6,251 deals compared with the 762.1 million stocks worth N7.7 billion traded in 7,935 deals on Tuesday, representing a decline in the trading volume, value and the number of deals by 56.60 per cent, 44.16 per cent, and 21.22 per cent apiece.

Transcorp transacted 58.8 million shares valued at N209.2 million to lead the log, as FBN Holdings sold 28.0 million equities for N502.8 million. Ecobank exchanged 21.3 million stocks worth N330.3 million, Access Holdings traded 20.7 million shares for N341.8 million, and Chams transacted 17.0 million stocks valued at N16.1 million.