Emmanuel Ochayi
The equity market extended its rally for the third consecutive day on Wednesday, with investors gaining approximately N246 billion.
This increase was driven by notable performances from Abbey Mortgage Bank, the National Salt Company, First City Monument Bank, and 28 other gainers.
Join our WhatsApp ChannelThe benchmark index of the Nigerian Exchange and the market capitalisation saw an uptick of 0.44%, reaching 98,818.04 points and N55.90 trillion, respectively. As a result, the year-to-date return improved to 32.2% from 31.6%.
On Tuesday, investors had already experienced a significant gain of N294 billion as the All-Share Index and market capitalisation rose by 0.53%, settling at 98,383.04 basis points and N55.65 trillion. This continued upward trend has been encouraging for market participants.
Speaking on the recent market performance, John Okafor, a financial analyst, noted, “The continuous rally is a positive sign of investor confidence. We are seeing a lot of movement in the market, and the gains by key players like Abbey Mortgage Bank and National Salt Company are particularly noteworthy.”
Abbey Mortgage Bank led the gainers’ chart with a 9.76% appreciation, closing at N2.70. The National Salt Company followed closely with a 9.66% increase to N40.85, while First City Monument Bank saw a 9.63% rise to close at N7.40. These gains have significantly contributed to the overall positive sentiment in the market.
On the flip side, some companies experienced losses. International Energy Insurance led the list of losers, dropping by 9.68% to close at N1.40. Jaiz Bank followed with a 6.52% decline to N2.15, and Tantaliser fell by 6.00%, ending the day at N0.47.
READ ALSO: NGX: Equity Market Rally Continues For Third Day With N246bn Gain
The demand for shares in Dangote Sugar, First Bank of Nigeria Holdings, and Zenith Bank played a crucial role in the positive outcome of the local stock exchange. Despite the rally, the volume and value of traded shares dipped by 7.3% and 27.6% to 518.9 million units and N4.8 billion, respectively.
Okafor added, “While the dip in trading volume and value might seem concerning, it’s important to consider the broader picture. The overall market trend remains positive, and these fluctuations are part of normal market dynamics.”
Four sector indices recorded gains, indicating a widespread positive performance. The AFRICT and Oil & Gas indices remained flat, but the Consumer and Industrial Goods indices increased by 0.9% and 0.1%, respectively. This growth was driven by price increases in Dangote, NASCON Allied Industries Plc, and West Africa Gas Pipeline Company.
Reflecting on the sectoral performance, Mary Johnson, an investment strategist, said, “The gains in the Consumer and Industrial Goods sectors are a testament to the resilience and potential of these industries. The stability in the AFRICT and Oil & Gas indices also bodes well for future growth.”
As the market continues to show signs of resilience and growth, investors are closely watching the trends and making strategic decisions. The sustained rally brings a sense of optimism, but experts advise caution and thorough analysis before making investment choices.
“The market’s performance is encouraging, but investors should remain vigilant. Diversification and careful analysis of market trends are essential for sustained success,” Johnson advised.
The equity market’s current trajectory highlights the importance of staying informed and adaptable. As the market evolves, both seasoned and new investors must navigate the landscape with a balanced approach to maximize gains and mitigate risks.
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.
