Nigerian stocks accelerated at their swiftest pace so far this year on Tuesday as the main equity index rose by 5.2 per cent and the value of shares appreciated by over N1.5 trillion.
Analysts say the jump was helped by positive sentiments that followed new policy directions by the new administration in the country.
Investors warmed to President Bola Tinubu’s planned economic reforms, particularly his resolve to scrap costly fuel subsidies and unify Nigeria’s multiple exchange rates, with transaction volume increasing by 133 per cent and turnover more than doubling.
NGX 30, the index that measures the top 30 companies on the Nigerian Exchange in terms of liquidity and market capitalisation, expanded by 5.6 per cent. That was the sharpest growth rate since November 2020.
Unusual for the market, at least six stocks each added as much as 10 per cent, the highest daily upper price movement allowed by the bourse.
“We see more room for extended bargain hunting among listed corporates as investors look to reinvest dividends received across fundamentally sound stocks,” said analysts at United Capital in their outlook note for this week seen by PulseNets.
“More risk-averse investors will look to book some profit off profitable positions,” they added.
Market breadth, an indicator of investor sentiment towards trade, was positive as 64 gainers were reported compared to 14 decliners.
The all-share index grew by 2,771.9 basis points to 55,738.4, while market capitalisation climbed to N30.3 trillion. Year to date, the index has yielded 8.8 per cent
Top Five Gainers
Zenith Bank appreciated by 10 per cent to close at N29.70. Transcorp Hotels enlarged by 10 per cent to end trade at N8.25. Nigerian Breweries rose to N42.35, notching up 10 per cent in the process. Jaiz Bank went up by 10 per cent to N1.10. FCMB completed the top 5, climbing by 10 per cent to N4.62.
Top Five Losers
Ikeja Hotel led losers, declining by 10 per cent to close at N2.16. NCR shed 9.8 per cent to end trade at N2.76. Tantalizers fell to N0.23, losing 8 per cent. Julius Berger slumped to N29, recording a 7.94 per cent depreciation. International Energy Insurance closed at N1.20, going down by 7 per cent.
Top Trades
Altogether, 1.1 billion shares estimated at N15.8 billion were traded in 9,916 deals.
