NGX gains N140bn driven by new listing, consumer goods stocks

NIGERIA, Oct. 6 – Trading on the floor of the Nigerian Exchange Limited (NGX) on Thursday ended on a positive note with a gain of N140bn added to investors’ wealth on the local bourse.

The market capitalization had shed N158bn on Wednesday on the back of losses recorded by MTN Nigeria (3.85 %), Wema Bank (10 %), Fidelity Bank (3.57 %), Sterling Financial Holding Company (2.72 %, Unity Bank (2 %), FCMB (0.33 %) and FBN Holdings (0.31 %).

However, the market rebounded on Thursday as the benchmark index closed positively at 66,570.19 points, indicating a 0.13 % gain.

The market capitalization also increased by 0.39 % to reach N36.53tn, primarily driven by buying interest in banking, consumer goods, and industrial goods stocks plus the listing of the Nigerian Industrial Development Fund. The NIDF, a N200 billion public infrastructure investment fund was listed on the NGX adding about N92bn in capitalization to the exchange.

Strong buying interest was also observed in Wema Bank (9.93 %), Thomas Wyatt (9.74 %), Regency Alliance Insurance (+8.82 per cent), Daar Communications (8.70 %), and Royal Exchange (8.70 %).

Meanwhile, investor attention has remained on the third quarter earnings reporting season and the expected reconvening of the Monetary Policy Committee meeting by the Central Bank of Nigeria which is anticipated to provide economic direction.

Trading activities on the NGX led to an increase in the number of gainers, 24, compared to declining ones, 19.

Sectoral performance was generally bullish, with gains in the Banking, Consumer Goods, and Industrial Goods sectors, posting increases of 0.44 %, 0.30 %, and 0.03 %, respectively.

However, the Insurance sector declined by 0.06 %, and the Oil & Gas index remained unchanged.

Market activity was on the upbeat, with a significant increase in both total volume and value, up 54.27 % and 2.95%, respectively, to 1.02 billion units valued at N4.73bn and total trades increased by 4.71% to 6,959 deals.

The top trader by volume for the session was Neimeth, with 657.09 million units valued at N985.65m exchanged in 10 deals.