The Nigerian Exchange (NGX) gained more over N355 billion on Monday as investors flocked to buy BUA Cement shares. After the cement company’s management cut its pricing per bag, the market temperature rose for its stock.
A number of analysts predict that BUA Cement’s recent pricing battle will have an impact on margins, but volume sales will increase significantly.
“Nigerians are more price sensitive these days, and when you see a company that isn’t doing badly in terms of quality offering price cuts, rest assured that top line will grow strongly,” LSintelligence Associates research analysts wrote in an email.
According to data from the local exchange, market indicators increased by +0.97% as purchasing interest or the strong rally increased year-to-date return near 31%, rising far ahead of an annual inflation rate of 25.8%. The Nigerian Exchange All-Share Index gained 646.76 basis points, or +0.97%, to settle at 67,101.33 points. The year-to-date return increased to 30.93%, according to stockbrokers.
Atlass Portfolios Limited said in its daily equity note that stocks market activity was down, with total volume and total value traded for the day decreasing by -28.18% and -61.23%, respectively. According to data from the local market, stockbrokers at the investment business traded around 268.66 million units valued at $3,463.66 million in 6,911 transactions.
ABCTRANS was the most traded stock by volume, accounting for 10.90% of total transaction activity. ACCESSCORP (10.87%), OANDO (10.09%), UBA (8.85%), and TRANSCORP (8.84%) rounded out the top five on the volume chart. Based on its size advantage, ACCESSCORP was also the most traded stock in value terms, with 13.46% of the total value of trades on the exchange.
BUACEMENT topped the advancers’ chart with a price appreciation of 10.00 per cent, trailed by CHIPLC (9.80%), NB (+9.09%), JOHNHOLT (+8.11%), SUNUASSUR (+7.22%), and twenty others.
Twenty-three stocks depreciated, where PRESTIGE was the top loser, with a price depreciation of -10.00%. FTNCOCOA lost 8.33%, NEIMETH went down by 7.74%, INTBREW dipped by 4.17% NGXGROUP dropped by 4.04% while VITAFOAM bumped by 2.92%.
Due to the buying momentum, the market breadth closed positive, recording 25 gainers and 23 losers. In addition, the market sector performance closed positive. Trading results showed that four of the five major market sectors were up, led by the Industrial sector, which grew by +4.03%.
This was followed by the Insurance sector which recorded a 1.23% surge, the Consumer goods sector popped up by 0.78% and the Oil & Gas sector gained 0.36%. The Banking sector dropped by -0.44%
Overall, the equities market capitalisation advanced by ₦355.46 billion, representing a growth of +0.97%, to close at ₦36.87 trillion from ₦36.51 trillion last Friday
