In the middle of the week, the market capitalization of the Nigerian Exchange (NGX)’s equity section increased further, driven by a daily gain of almost N306 billion registered by alpha hunters on the local exchange. A thorough analysis of the market revealed a history of odd transaction volumes in banking names.
This is happening as stock market participants are positioning themselves ahead of the fourth quarter results season. A rise of +0.78% was observed in key market indicators, as per the local exchange statistics. As a result, the return for the year has surpassed 40%.
Due to persistently high volume trades and bargain hunting in banking equities, the market reached a record high. The market index, also known as the All-Share Index, rose by 558.47 basis points today, or +0.78%, to settle at 71,808.64, according to data from the Nigerian Exchange. The market’s year-to-date return barely increased to 40.11% based on trading outcomes.
Expecting the Santa Claus surge, market activity gradually increased. The overall rise in both volume and value exchanged was +59.15% and +8.88%, respectively. By email, Atlass Portfolios Limited informed investors that almost ₦12,100.60 million worth of units were exchanged in 8,412 transactions, citing statistics from the exchange.
GTCO was the most traded stock in terms of volume, accounting for 11.12% of the total volume of trades. The bank was followed by UBA (10.81%), FIDELITYBK (9.52%), ACCESSCORP (9.30%), and UNIVINSURE (6.83%) to complete the top 5 on the volume chart.
On account of its size advantage, GTCO was also the most traded stock in value terms, with 25.12% of the total value of trades on the exchange. THOMASWY topped the advancers’ chart on Wednesday with a price appreciation of 9.93 per cent, trailed by FBNH (9.91%), MULTIVERSE (+9.90%), ETI (+9.88%), INFINITY (+9.70%), and twenty-nine others.
Twenty-two stocks depreciated, stockbrokers said in a market note. MANSARD was the top loser, with a price depreciation of -9.9%. GUINEAINS (-9.68%), OANDO (-9.13%), OMATEK (-8.14%), NEIMETH (-6.22%), and TRANSCORP (-1.29%) also dipped in price.
Given the trading pattern, the market breadth closed positive, recording 34 gainers and 22 losers. Nonetheless, the market sector performance was negative, as three of the five major market sectors closed in red. Details showed that the Insurance sector dropped by 2.00%, followed by a 0.11% decline in the Consumer goods sector and the Industrial sector fell by -0.02%.
Today, the Banking sector was up by +5.01% while the Oil & Gas sector closed flat. Overall, the equities market capitalisation surged by ₦305.61 billion to close at ₦39.29 trillion from ₦38.99 trillion yesterday.
