Stock Market’s Benchmark Index Crosses 95,000 Basis Points

Kayode Tokede

The stock market of the Nigerian Exchange Limited (NGX), yesterday extended its positive momentum from last week, leading to major benchmark crossing the 95,000basis points threshold.

The All Share Index (NGX ASI) rose by 1,230 basis points or 1.30 per cent to close at 95,768.12 basis points from 94,538.12 basis points it opened for trading.

Also, market capitalisation appreciated by N673 billion to close at N52.408 trillion, buoyed by price increase in Dangote Cement Plc and 23 others.

As a result, the stock market year-to-date (YTD) return rose to 28.08per cent.

 As measured by market breadth, market sentiment was negative, as 24 stocks gained relative to 47 losers. SUNU Assurance recorded the highest price gain of 10 per cent to close at N1.98, per share. Dangote Cement followed with a gain of 9.99 per cent to close at N592.60, while Tripple Gee & Company rose by 9.81 per cent to close at N2.35, per share.

Eterna rose by 9.80 per cent to close at N25.20, while Meyer and Cutix appreciated by 8.89 per cent to close at N2.94, per share. On the other hand, Cadbury Nigeria, Flour Mills of Nigeria , McNichols, Sovereign Trust Insurance and University Press led the losers’ chart by 10 per cent each to close at N26.10, N42.30, N1.62, 54 kobo and N3.60 respectively, per share.

Jaiz Bank followed with a decline of 9.86 per cent to close at N3.11, while Wema Bank lost 9.58 per cent to close at N10.85, per share.

The total volume traded decreased by 4.92 per cent to 721.814 million units, valued at N14.408 billion, and exchanged in 15,757 deals. Transactions in the shares of Transnational Corporation (Transcorp) topped the activity chart with 66.521 million shares valued at N1.232 billion. Veritas Kapital Assurance followed with 47.004 million shares worth N34.906 million, while Access Holdings traded 40.010 million shares valued at N1.171 billion.

Universal Insurance traded 38.876 million shares valued at N19.198 million, while Japaul Gold & Ventures sold 32.824 million shares worth N84.643 million.

United Capital Plc said “in January 2024, we expect the Bulls to prevail, as bargain hunting continues as the order of the day. Given the global developments across major central banks in advanced economies, high base expectations for inflation, and improved economic growth prospects, we expect the local bourse to record a positive performance this new week. Investors may continue to cherry-pick stocks with strong fundamentals, (value or growth).

“However, value stocks may be choice for dividend scouting investors, ahead of FY-2023 earnings season. At different intervals, we expect mild selloffs, albeit insignificant.”