Demand for MTN, 28 Others Lift Stock Market by N961bn

Kayode Tokede

The Nigerian stock market, yesterday sustained its positive momentum as renewed buying interest in MTN Nigeria Communications, 28  others continued to drive positive investor sentiment across the bourse. 

The Nigerian Exchange Limited All Share Index (NGX ASI) gained by 1,498.75 basis points, or  0.62 per cent to close at 243,958.73 basis points with the Month-to-Date and Year-to-Date returns settled higher at +6.3per cent and +56.8per cent, respectively. 

Also, market capitalisation gained N961 billion to close at N156.547 trillion.

Sectoral performance was mixed as the Banking (+1.3per cent), Consumer Goods (+1.2per cent) and Insurance (+0.3per cent) Indices closed higher, while the Oil & Gas (-0.2per cent) index closed lower. The Industrial Goods index closed flat.

As measured by market breadth, market sentiment was positive, as 29 stocks gained relative to 26 losers. International Breweries recorded the highest price gain of 10 per cent to close at N12.10, per share. First Holdco followed with a gain of 9.96 per cent to close at N69.55, while Abbey Bank rose by 9.88 per cent to close at N8.90, per share.

Trans-Nationwide Express went up by 9.76 per cent to close at N3.26, while Honeywell Flour Mills appreciated by 9.68 per cent to close at N17.00, per share. 

On the other hand, Thomas Wyatt Nigeria and Geregu Power led the losers’ chart by 10 per cent each to close at N2.70 and N825.70 respectively , while McNichols followed with a decline of 9.76 per cent to close at N5.55, per share.

UPDC depreciated by 9.20 per cent to close at N3.95, while Neimeth International Pharmaceuticals declined by 8.16 per cent to close at N9.00, per share.

The total volume traded increased by 219.45 per cent to 1.656 billion units, valued at N111.977 billion, and exchanged in 44,780 deals. Transactions in the shares of First Holdco topped the activity chart with 1.258 billion shares valued at N85.612 billion. 

Zenith Bank followed with 43.829 million shares worth N4.649 billion, while Access Holdings traded 40.992 million shares valued at N1.020 billion.

FCMB Group traded 17.716 million shares valued at N188.297 million, while Fidelity Bank sold 16.019 million shares worth N315.164 million.

On market performance, Imperial Asset Managers Limited said, the market’s sixth consecutive advance reinforces the improving risk appetite that has characterised trading over the past week. While today’s rally was heavily influenced by extraordinary activity in First Holdco, the positive market breadth and continued strength in the banking sector suggest that investor confidence remains intact ahead of the earnings season.

Looking ahead, the Firm stated that “investor sentiment is expected to remain driven by positioning ahead of upcoming corporate earnings releases, developments in the foreign exchange market, and macroeconomic policy signals. 

“While bargain hunting has begun to emerge in selected fundamentally sound counters, investors are likely to remain selective given prevailing market uncertainties. We therefore maintain a disciplined investment approach, favouring fundamentally strong companies with resilient earnings prospects and sustainable dividend potential.”