At 64,603.69, Stock Market Benchmark Index Hits 15-year High

Kayode Tokede

The stock market arm of the Nigerian Exchange Limited (NGX) opened the new week strong yesterday, as the benchmark index gained 2.48 per cent to close at 64,603.69 basis points, the highest point since March 17, 2008.

Also, the market capitalisation rose by N851 billion to close at N35.177 trillion, propelled by surge in Dangote Cement Plc and 70 others.

Sectoral performance was bullish as the NGX Industrial Index gained 5.13per cent, the NGX Oil and Gas rose by 2.61per cent and the NGX Banking gained 1.73 per cent, while the NGX Consumer Goods dropped by 0.18 per cent.

 As measured by market breadth, market sentiment was positive, as 71 stocks gained relative to 19 losers. DAAR Communications, Dangote Cement, MRS Oil Nigeria, Neimeth International Pharmaceuticals and Jaiz Bank emerged the highest price gainers of 10 per cent each, to close at 22 kobo, N330.10, N109.45, N2.20 and N1.98 respectively, per share.

Transcorp Hotels followed with a gain of 9.98 per cent to close at N35.91, while Conoil advanced by 9.97 per cent to close at N112.50, per share.

On the other side, Pharma Deko led others on the losers’ chart with 9.85 per cent to close at N1.83, per share. Union Dicon Salt followed with a decline of 9.50 per cent to close at N8.10, while Berger Paints Nigeria shed 9.09 per cent to close at N10.00, per share.

Guinea Insurance lost 7.69 per cent to close at 24 kobo, while Champion Breweries depreciated by 5.43 per cent to close at N4.35, per share.

The total volume of trades increased by 49.80 per cent to 1.839 billion units, valued at N22.033 billion, and exchanged in 14,584 deals. Transactions in the shares of FBN Holdings (FBNH) led the activity with 198.222 million shares worth N4.418 billion, Universal Insurance followed with account of 184.656 million shares valued at N53.465 million, while Sterling Financial Holdings Company traded 161.679 million shares valued at N724.332 million.

Transnational Corporation (Transcorp) traded 156.417 million shares worth N706.916 million, while AIICO Insurance traded 98.322 million shares worth N73.579 million.

In their review of the market performance, analysts at InvestmentOne Research stated, “The local equities market recorded a positive performance today driven by the gains printed across major sectors.

“Going forward, we expect investor’s sentiment to be swayed by the search for real positive returns and developments in the interest rate space. We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”

Commenting on their expectations for the week, analysts at United Capital Plc stated, “we expect the bullish sentiments in the equities market to persist on the back of the attractiveness of the market over the depressed rates in the fixed-income market.

“Also, we believe the positive sentiments around the new policies to continue to drive the rally in the market. Lastly, we expect investors to begin to take positions ahead of the upcoming Q2, 2023 earnings season.”