Rush for Defensive Stocks Keeps NGX in Positive Territory by 0.31%
By Dipo Olowookere
The domestic stock market appreciated by 0.31 per cent on Wednesday as the bulls tightened their grip on the Nigerian Exchange (NGX) Limited on sustained bargain-hunting.
Data showed that the buying pressure was on almost all the sub-sectors of the bourse, particularly on some defensive stocks like GTCO, Zenith Bank, and others.
However, the industrial goods space saw a bit of profit-taking, especially in Lafarge Africa. Also, MTN witnessed a sell-down during the midweek session.
Business Post reports that the consumer goods rose by 1.09 per cent, the banking space improved by 0.96 per cent, the energy index appreciated by 0.49 per cent, the insurance counter jumped by 0.48 per cent, and the industrial goods sector depreciated by 0.10 per cent.
The gains from others raised the All-Share Index (ASI) higher by 161.53 points at the close of business to 52,580.86 points from 52,419.33 points, and the market capitalisation expanded by N88 billion to N28.631 trillion from N28.543 trillion.
The market was quite busy yesterday as investors bought and sold 680.8 million stocks worth N7.9 billion in 6,666 deals, in contrast to the 576.9 million stocks worth N6.8 billion traded on Tuesday in 6,143 deals, implying an increase in the trading volume, value and the number of deals by 18.01 per cent, 16.18 per cent, and 8.51, respectively.
Fidelity Bank topped the chart with the sale of 254.1 million equities valued at N1.4 billion, trailed by Access Holdings with 112.8 million shares valued at N1.1 billion, Transcorp sold 63.4 million equities worth N185.6 million, GTCO traded 60.0 million shares for N1.6 billion, and Zenith Bank exchanged 31.7 million stocks worth N794.4 million.
Investor sentiment was very strong on Wednesday as the stock exchange finished with 29 appreciating equities and 18 depreciating equities, representing a positive market breadth.
MRS Oil chalked up 9.93 per cent to top the gainers’ log, closing at N37.10, as Nigerian Breweries appreciated by 9.63 per cent to N38.70. Cornerstone Insurance increased its value by 9.46 per cent to 81 Kobo, FTN Cocoa leapt by 8.82 per cent to 37 Kobo, and Royal Exchange rose by 8.33 per cent to 52 Kobo.
Conversely, Consolidated Hallmark Insurance lost 7.69 per cent to trade at 60 Kobo, Sovereign Trust Insurance shrank by 6.52 per cent to 43 Kobo, Transcorp slumped by 5.23 per cent to N2.90, Caverton contracted by 4.76 per cent to N1.00, and Coronation Insurance slipped by 4.44 per cent to 43 Kobo.