Stock Market Gains N41bn, Shrugs Off Bearish Sentiment
The equities market has shrugged off bearish sentiments, gaining N23bn on Tuesday and N18bn on Wednesday as 24 stocks climbed, outperforming losses in 10 stocks.
The market capitalisation of equities increased from N12.883tn on Monday to N12.906tn on Tuesday and N12.924tn on Wednesday.
The All Share Index gained 0.14 per cent to close at 26,776.15 basis points as the year-to-date loss eased to -14.8 per cent.
Analysts at Afrinvest Securities Limited said the positive performance recorded on Wednesday was due to gains in the Nigerian Breweries Plc, FBN Holdings Plc and United Bank for Africa Plc.
Conversely, activity level dipped as volume and value traded declined by 32.2 per cent and 53.3 per cent, respectively to 267.314 million units and N3.053bn.
The most active stocks by volume were Access Bank Plc (63.5 million units) UBA (44.9 million units), and Zenith Bank Plc (24.1 million units), while Access Bank (N643.7m), Zenith Bank (N451.6m) and Guaranty Trust Bank Plc (N475.7m) led by value.
Performance across sectors was largely bullish as four sectors recorded gains.
The banking and consumer goods indices gained the most, advancing by 1.8 per cent and 1.3 per cent, respectively, due to buying interest in the FBN Holdings, UBA, Nigerian Breweries and PZ Cussions Nigeria Plc.
Gains in NEM Insurance Plc and Conoil Plc buoyed the insurance and oil and gas indices, up by 0.2 per cent and 0.1 per cent, respectively.
Meanwhile, sell-offs in Lafarge Africa Plc, Dangote Cement Plc and MTN Nigeria Communications Plc dragged the AFRI-ICT and industrial goods indices down by 1.3 per cent.
Investor sentiment as measured by market breadth (advance/decline ratio) advanced to 2.4x from 1.5x recorded on Tuesday.
The top five gainers were Chams Plc, Learn Africa Plc, Conoil, Cornerstone Insurance Plc and NPF Microfinance Bank Plc, which gained 10 per cent, 9.48 per cent, 9.47 per cent, 9.38 per cent and 9.09 per cent, respectively.
The top five losers were Nascon Allied Industries Plc, Lasaco Assurance Plc, Wapic Insurance Plc, Unity Bank Plc and Aiico Insurance Plc, whose respective share prices depreciated by 5.72 per cent, 3.57 per cent, 2.86 per cent, 2.78 per cent and 2.74 per cent.
“We expect the renewed interest in the market to continue although it may be short-lived,” analysts at Afrinvest Securities said.