In a noteworthy development, the Nigerian Exchange Limited (NGX) has marked a significant milestone, breaching the 100,000 mark, fueled by sustained bargain hunting in Dangote Cement Plc, resulting in a notable three percent uptick in the all-share index (ASI).
Market Performance and Milestone:
The ASI experienced a robust surge, gaining 2,954.14 points, equivalent to a three percent increase, and concluding at an impressive 101,571.11 points. Simultaneously, the overall market capitalization saw a substantial increase of N1.617 trillion, settling at N55.584 trillion.
Year-to-date, the domestic market has exhibited an outstanding return of 35.84 percent, surpassing inflationary levels in the country. Notably, it has outperformed various indices in the African, European, and Middle Eastern markets, as indicated by Bloomberg. However, the total value of stocks traded witnessed a 51 percent decrease, amounting to N8.04 trillion compared to the previous day’s trading.
Analyst Expectations:
Analysts at Vetiva Dealings and Brokerage anticipate another positive market breadth in the upcoming trading session, with expectations of mixed sector performance.
Drivers of Market Performance:
The positive performance in the market can be attributed to the appreciating prices of large and medium-capitalized stocks. Dangote Cement, BUA Cement, BUA Foods, NASCON Allied Industries, and Flour Mills of Nigeria were among the key players driving the surge.
Investor Sentiment and Market Breadth:
Investor sentiment, measured by market breadth, closed positively, with 35 stocks gaining and 32 losing. Wapic Insurance led the gainers with a 10 percent increase, while NEM Insurance topped the losers’ chart with a 10 percent decline.
Notable Gains and Losses:
Top Gainers: Wapic Insurance (10%), BUA Cement (9.98%), Japaul Gold & Ventures (9.91%)
Top Losers: NEM Insurance (10%), Cadbury Nigeria (9.96%), The Initiates Plc (9.92%)
Trading Activity:
The total volume of trade decreased by 34.65 percent to 488.491 million units, valued at N8.037 billion, exchanged in 12,080 deals. Transnational Corporation (Transcorp) dominated the activity chart, followed by Universal Insurance and Unity Bank.
As the market continues to navigate these fluctuations, investors remain optimistic, celebrating the achievement of the historic 100,000 mark and closely monitoring the evolving economic landscape. The Central Bank’s commitment to proactive measures adds to the positive sentiment, providing hope for sustained growth in the Nigerian economy.
Credit: The Guardian
