Stock Investors Gain N510bn As Market Hits 15-year High
Investors in the stock market yesterday recorded a N510 billion gain after All Share Index (ASI), the key performance measurement barometer in the market, hit a 15-year high.
The All-Share Index of Nigerian Exchange Limited (NGX) yesterday rose by 0.51 percent to 66,490.34 points from 66,151.38 on Monday 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 0.51 percent to close at N39.69 trillion from N36.21 trillion recorded on Monday with investors gaining N510 billion at the end of the day.
Reacting to the development yesterday, Mr. David Adonri, Vice Chairman, Highcap Securities, said: “The implication is that now, the market is deeper and should be more resilient. However, the fact that prices have skyrocketed to current levels still leaves questions as to the absorptive capacity of the equities market.
“As a result of the momentum that is still gathering in the secondary market, there is increasing clamour that time has come for the primary market to be energized with new strategic equity issues so as to soak away pressure from the secondary market. This conducive atmosphere should be used to mobilize equity capital for strategic sectors especially metallurgy, tools and machines making industry, chemical industry, electric power and clean energy industry as well as technical education.”
Meanwhile, the analysis of transactions yesterday showed the banking sector experienced the most significant daily gain, rising by 1.63 percent, followed by the consumer goods sector with a 0.99 percent increase, while the industrial goods sector saw a 0.21 percent uptick.
Conversely, the oil/gas sector dipped by 0.09 percent, while the insurance sector recorded a substantial decline of 1.56 percent, both attributable to investors reallocating their funds.
