The Nigerian Exchange Limited’s All-Share Index surged to 66,490.34 basis points at the conclusion of trade on Tuesday, shattering a 15-year high.
The ASI increased by 0.51 percent to 66,490.34 points from 66,151.38 on Monday, surpassing the Exchange’s best value of 66,371.20 on March 5, 2008. The achievement is due in part to a rise in purchase interest in banking equities as investors positioned themselves to capitalize on banks’ recent record earnings.
Similarly, the market capitalization grew by 0.51 percent to N39.69 trillion, up from N36.21 trillion on Monday. Investors have won N510 billion in two days of trading this week (N325 billion on Monday and N185 billion on Tuesday).
Among industry benchmarks, the NGX Banking Index gained the most ground on the day, increasing 1.63 percent. Following closely after were the NGX Consumer Goods Index, which rose 0.99%, and the NGX Industrial Index, which rose 0.21 percent. The NGX Oil/Gas Index, on the other hand, fell by 0.09 percent, while the NGX Insurance Index fell by 1.56 percent, both due to investors reallocating their capital.
An examination of Tuesday’s market operations indicated a significant rise in trade turnover compared to the previous session, with transaction values increasing by 79.18%. As a result, the total amount of stocks exchanged reached 436.95 million units, valued at N7.02 billion, spanning 7,933 transactions. This was a huge increase from the 311.12 million units valued at N3.92bn traded in 7,193 deals on Monday.
FBN Holdings topped the activity chart with 55.15 million units valued at N911.21m. Following closely was Japaul Gold with the sale of 33.11 million units worth N29.92m, while UBA transacted 30.17 million units valued at N41.21m.
Market breadth closed positive, with 35 stocks appreciating in value while 32 stocks depreciated. Champion Breweries led the pack of gainers with 10 per cent increase in stock value. Conversely, Linkage Assurance led the group of 32 declining securities, with a 10 per cent decrease in its equity value.
The strong performance has been attributed to a combination of factors, including investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu.
Additionally, movements in yields within the fixed-income market played a role in shaping market dynamics. They emphasized the importance of strategically positioning investments in fundamentally strong stocks, given the ongoing challenges posed by the weak macroeconomic environment on corporate earnings.
