NGX: Market Rebounds as Banking Stocks Drive N166bn Gain
The Nigerian Exchange Limited (NGX) witnessed a rebound in its equities market on Tuesday, propelled by a rally in banking stocks. The market had initially started the week on a negative note, experiencing a 0.57 per cent decline on Monday.
However, Tuesday’s resurgence saw a remarkable improvement of 0.43 per cent, adding 303.34 absolute points to the NGX All Share Index (ASI), reaching 71,250.17 from the previous day’s close of 70,946.83.
The driving force behind yesterday’s impressive performance was a surge in investor interest in banking stocks, particularly those of United Bank for Africa, GTCO and ACCESSCORP, which collectively contributed to the market’s upward trajectory.
As a result, investors gained a substantial N166 billion, pushing the market capitalisation from N38.823 trillion to N38.989 trillion and marking a significant Year to Date (YTD) gain of 38.43 per cent.
Market sentiment remained positive with 40 stocks appreciating in value while 16 declined. The equities market has showcased resilience and optimism in recent times, however, market analysts at Futureview Research had predicted mixed sentiment for the trading week.
The positive sentiment was reflected in the top gainers, with NSLTECH leading the pack with a 10.00 per cent increase, closing at N0.77 per share. Other notable gainers included Multiverse adding 9.95 per cent in value and closed the day at N7.07 per share, followed by SUNUASSUR gaining 9.92 per cent, closing at N1.33 per share, while FBNH and Thomaswy gained 9.86 per cent and 9.82 per cent each to close at N9.86 and N3.02 per share respectively.
Conversely, some stocks witnessed declines, with ABBEYBDS, FTNCOCOA, DAARCOMM, WAPIC, and Veritaskap emerging top losers after closing at N1.55, N1.50, N0.31, N0.65, and N0.35 per share respectively.
The most traded stock of the day was UACN, exchanging 61.710 million units of shares valued at N947.41 million.
Overall, Tuesday’s trading session on the NGX recorded a total of 433.56 million shares traded in 7,016 deals, with a market value of NGN 11.11 billion.
The data represented a 21 per cent improvement in volume, a 57 per cent improvement in turnover, and a 9 per cent improvement in deals compared to the previous trading day.
