Excitement in Stock Market as NGX ASI Hits 15-year High

Kayode Tokede

The Nigerian capital market was euphoric at the close of trading yesterday as the stock market hit a 15-year high.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose by 0.51per cent to 66,490.34 basis points from 66,151.38 basis the previous day, surpassing the highest value of 66,371.20 recorded on the Exchange on March 5, 2008.

This performance was in part, attributed to a surge in banking stocks as investors strategically positioned themselves, taking advantage of the recent record earnings posted by banks. Consequently, market capitalisation increased by 0.51per cent to closed at N39.69 trillion from N36.21 trillion recorded the previous day.

This meant that investors gained N510 billion in two trading sessions. Among the various sectoral indices, the NGX Banking Index experienced the most significant daily gain, rising by 1.63%. Following closely were the NGX Consumer Goods Index, with a 0.99 per cent increase, and the NGX Industrial Index, which saw a 0.21 per cent uptick.

Conversely, the NGX Oil/Gas Index dipped by 0.09per cent, and the NGX Insurance Index recorded a substantial decline of 1.56 per cent, both attributable to investors reallocating their funds.

An analysis of yesterday’s market activities revealed a substantial increase in trade turnover compared to the previous session, with transaction values surging by an impressive 79.18 per cent.

Consequently, the total volume of stocks traded reached 436.95 million units, valued at N7.02 billion, across 7,933 deals. This marked a significant uptick from the 311.12 million units valued at N3.92 billion traded in 7,193 deals on Monday.

FBN Holdings topped the activity chart with 55.15 million units valued at N911.21 million. Following closely was Japaul Gold with the sale of 33.11 million units worth N29.92 million, while UBA transacted 30.17 million units valued at N41.21 million.

Market breadth closed positive, with 35 stocks appreciating in value while 32 stocks depreciated.

Champion Breweries and Flour Mills of Nigeria emerged the highest price gainer of 10 per cent each to close at N3.19 and N33.00 respectively, per share.  NASCON Allied Industries followed with a gain of 9.96 per cent to close at N54.10, while NAHCO and Dangote Sugar Refinery advanced by 9.95 per cent each to close at N22.10 and N57.45 respectively, per share.

On the other side, Linkage Assurance and Computer Warehouse Group (CWG) led others on the losers’ chart with 10 per cent each to close at 90 kobo and N4.05 respectively, while Chellaram followed with a decline of 9.85 per cent to close at N3.57, per share.

Prestige Assurance depreciated by 9.80 per cent to close at 46 kobo, while University Press shed 9.66 per cent to close at N2.15, per share.

Reacting to the performance of the market, market experts attributed this strong performance to a combination of factors, including investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu. Additionally, movements in yields within the fixed income market played a role in shaping market dynamics. They emphasized the importance of strategically positioning investments in fundamentally strong stocks, given the ongoing challenges posed by the weak macroeconomic environment on corporate earnings.