Emmanuel Ochayi
On Monday, the equity market experienced a boost, gaining N323 billion. This was primarily driven by the appreciation in the shares of Flour Mills Nigeria, Total Nigeria, Access Holding, and 27 other stocks.
At the end of the trading day, the market capitalisation rose by 0.58 percent to settle at N56.52 trillion, while the All-Share Index increased to 99,793.71 points.
Join our WhatsApp ChannelThis positive movement in the market also elevated the year-to-date return from 32.8 percent to 33.5 percent. Trading activity showed a marked improvement with the volume and value of shares exchanged increasing by 148.3 percent and 83.6 percent, respectively, to 963.5 million units and N13.5 billion.
Commenting on the day’s performance, market analyst Kemi Adebayo said, “The surge in the equity market is a clear indication of investor confidence, particularly in the banking and oil & gas sectors which saw significant gains today.”
The day’s trading saw two indices decline while four others gained. The banking and oil & gas indices led the gains, rising by 2.7 percent and 3.1 percent, respectively. Flour Mills Nigeria topped the gainers chart with a 10 percent increase to N41.80. Total Nigeria followed closely with a 9.88 percent rise, closing at N353.60, and Access Holding gained 9.86 percent to end the day at N18.95.
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On the other hand, E-Tranzact International led the losers with a 9.90 percent decline, closing at N4.55. Daar Communications and Champion Breweries also saw losses, falling by 9.52 percent and 6.67 percent to close at N0.57 and N2.80, respectively.
In terms of market participation, there was a notable increase as the volume of traded units went up by 148.32 percent to 963,540,754. Fidelity Bank was the most traded security by value, with N6.03 billion worth of its shares exchanged in 417 deals. Abbey Mortgage Bank led the volume chart, trading 2,919 units in 12 deals.
Despite the positive start to the week, the equity market had a challenging end last week. Investors on the Nigerian Exchange lost N225 billion, with the market capitalisation and the all-share index dipping by 0.08 percent to close at N56.13 trillion and 99,221.14 points, respectively.
Bismarck Rewane, Chief Executive Officer of Financial Derivatives, provided insights into the current market dynamics. “High interest rates are making borrowing more expensive, which is likely to hurt business profits. Additionally, fixed-income instruments with high yields continue to be attractive to investors,” he explained.
Rewane also highlighted expectations for June, predicting an increase in capital raising operations in the Nigerian equity market. “Businesses with significant value losses will face foreign exchange challenges and shareholder recapitalisation,” he noted. “Speculative investors are likely to exit the stock market in search of higher yields following dividend payments.”
As the market progresses, investor confidence and market dynamics will continue to play crucial roles in shaping its performance.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
