One of the most dynamic financial centres on the African continent, the Nigerian Stock Exchange, started the trading week on a positive note. Indeed, the market capitalisation of the Nigerian Stock Exchange Ltd. (NGX) rose by N79 billion, or 0.14%, to close at N56.536 trillion, compared to its opening of N56.457 trillion.
The overall market index also recorded an increase of 0.14%, or 139 points, to close at 98,386.60 points, compared to 98,247.99 points recorded the previous Friday. This performance helped increase the year-to-date return by 31.58%.
The rally was fuelled by investor appetite for stocks such as FBN Holdings, United Bank For Africa (UBA), Fidelity Bank, Nigeria Breweries and Transnational Corporation, among other high growth stocks.
The session witnessed a positive ratio with 32 gainers against 20 losers in the market.
On the gainers’ chart, FCMB and McNichols led the way with a 10 per cent gain each to close at N8.89 and N1.87 per share respectively. Fidelity Bank followed with a 9.93 per cent gain to close at N14.95, Tantalizers posted a 9.84 per cent gain to close at 67 kobo, while Flour Mill rose 9.81 per cent to close at N55.40 per share.
On their part, Berger Paints recorded the biggest decline as it shed 9.83% to close at N21.10, followed by Daar Communications which fell 9.33% to end at 68 kobo per share.
Deap Capital Management and Trust Plc lost 9.09% to close at 90 kobo, Secure Electronic Technology Plc fell 7.46% to close at 62 kobo per share, while Honeywell Flour also declined 5.12% to close at N4.63 per share.
Analysis of market activity showed a decline in trading volume compared to the previous session, with the value of transactions down 18.06%. A total of 810.43 million shares worth N8.29 billion were traded in 10,669 deals, compared to 554.22 million shares worth N10.12 billion traded in 8,670 deals in the previous session.
Among the trades, Mecure led the charts in volume and value with 400.08 million shares worth N2.78 billion.
In their market review and outlook, analysts at Cowry Asset Management Ltd. anticipated continued bullish sentiment for the new week as the market showed resilience in the face of positive macroeconomic signals. They noted that this would be fuelled by portfolio rebalancing and strategic positioning in stocks with high value potential.
The latest declines in inflation and favourable quarter-end activities suggest that investor optimism may persist, creating entry opportunities for those seeking fundamentally sound investments.
However, they cautioned against market volatility, advising investors to focus on quality stocks with strong growth prospects to effectively navigate potential fluctuations.
In conclusion, the Nigerian Stock Exchange appears to be offering fertile ground for investors, with key stocks trending higher, reflecting increased confidence in the country’s economy and financial market.