NIGERIA’S stock market has extended its recent rise with the total value of listed equities increasing by about N652 billion as investors continued buying shares of several major companies.
The Nigerian Exchange (NGX) market capitalisation rose on Tuesday from N157.747 trillion at Monday’s close to N158.399 trillion, representing a 0.41 per cent increase.
The NGX All-Share Index, which tracks the general movement of prices on the Nigerian equities market, also gained 1,005.27 points, to close at 244,304.51 points, compared with 243,299.24 points on Monday.
According to market reports, the Tuesday session marked the market’s fourth consecutive positive session and has pushed the market’s year-to-date return to 56.99 per cent.
The market’s gain was supported by strong buying interest in companies including Nigerian Exchange Group (NGX Group), Aradel Holdings, Sovereign Trust Insurance, McNichols Consolidated and International Breweries.
NGX Group, the parent company of the Nigerian Exchange, led the gainers, rising 9.95 per cent to close at N179 per share.
Aradel Holdings, an energy business involved in petroleum exploration, production and related activities followed, gaining 9.62 per cent to close at N1,550 per share.
Sovereign Trust Insurance gained 9.50 per cent to close at N1.96, while McNichols Consolidated rose 9.09 per cent to N4.80.
International Breweries also recorded a strong performance, gaining 8.50 per cent to close at N10.85.
Other notable gainers included Nigerian Breweries, which rose 4.43 per cent, Oando, up 3.92 per cent, Wema Bank, up 2.75 per cent, Zenith Bank, up 1.67 per cent, and Access Holdings, which gained 1.59 per cent.
However, some stocks recorded losses, as Ecobank Transnational Incorporated (ETI) led the losers, falling 10 per cent to close at N66.60 per share.
Trans-Nationwide Express declined 9.93 per cent to N2.45, while AVA Capital fell 9.90 per cent to N4.55.
PZ Cussons Nigeria dropped 9.52 per cent to N75.10, while Prestige Assurance declined 8.72 per cent to N1.36.
Market breadth, which compares the number of stocks whose prices increased with those that declined, showed that 34 equities gained while 26 declined, meaning that more listed stocks finished the session higher than lower, although the gains were not evenly distributed across the market.
According to Proshare’s market report, trading activity also increased during the session, as investors traded 520.65 million shares worth N37.14 billion in 71,977 deals.
Meanwhile, trading volume increased by 21.37 per cent from the previous session, as Mutual Benefits Assurance recorded the highest trading volume, with 39.01 million shares, representing 7.49 per cent of the total volume traded.
Aradel Holdings recorded the highest value of transactions, with shares worth N6.35 billion changing hands. That represented 17.09 per cent of the day’s total traded value.
But another market-data source recorded 505.12 million shares, N36.29 billion and 71,635 deals. The 244,304.51-point ASI close, 0.41 per cent gain and N651.78 billion market-capitalisation increase are consistently reported across the more detailed market reports.
The ICIR reports that All-Share Index is a broad measure of the performance of equities listed on the NGX.
When the index rises, it generally means share prices have increased across the market, although the index can be influenced more heavily by larger companies.
The market had closed at N157.747 trillion on Monday before Tuesday’s N651.78 billion increase, while the ASI rose from 243,299.24 to 244,304.51 points.
The continued rise has therefore strengthened the Nigerian equities market’s gains for the year, with its year-to-date return now at 56.99 per cent.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.