The Nigerian Exchange (NGX), which ended the previous week in the red, surged on Monday. New interest in the consumer products industry contributed to a #250 billion increase in market capitalization. The stock market began trading for the week after reversing a downward trend. Deal-seeking activity in BUAFOODS (+9.3%), one of the NGX market movers, maintained the upward trend.
Stock brokers observed a resurgence in interest among equity investors in growth firms including Dangote Sugar PLC and BUA Foods, which helped to fuel the trend. Trading activity for Transcorp increased, which increased the company’s stock price. After receiving a number of buy recommendations from Broadstreet analysts, WAPCO attracted interest from investors. Ahead of the results announcement, investors buy UBA stock.
The Nigerian Exchange All-Share Index increased by 0.7% to 65,202.41 points as a consequence of the positive activity. As a result, the year-to-date return increased and closed at 27.2%, which is still greater than the annual inflation rate of 24.08%. There were 5,494 transactions totaling 231.60 million units for N3.99 billion, a decline of 56.9% in the total volume transacted. The most actively traded stock by volume was TRANSCORP with 36.84 million units, while the most actively traded stock by value was MTNN with N1.45 billion.
Shares of BUAFOODS (+9.29%), TRANSCORP (+5.29%), DANGSUGAR (+2.86%), WAPCO (+0.73%), and UBA (+0.72%) were purchased by investors today at higher prices. Regarding industries, the Consumer Goods (+5.0%) and Insurance (+0.4%) indexes posted gains, while Oil & Gas (-0.7%) and Banking (-0.4%) had losses. The Industrial Goods Index is also closed flat.
As measured by market breadth, market sentiment was positive (2.1x), as 31 tickers gained relative to 15 losers. JOHNHOLT (+9.7%) and SCOA (+9.4%) recorded the most significant gains of the day, while TANTALIZER (-10.0%) and OMATEK (-9.1%) topped the losers’ list.
Overall, equities market capitalization rose by ₦250.00 billion, representing a growth of +0.71%, to close at ₦35,684.83 trillion from ₦35,435 last Friday In the forex market, the naira struggled to keep the previous week’s rally. The local currency depreciated by 2.9% to N761.32 at the Investors and Exporters FX Window due to weak supply side.
