Emmanuel Ochayi
The Nigerian equity market closed on a positive note on October 11, 2024, as the All-Share Index (ASI) rose by 0.13%, adding 129.44 points to close at 97,606.63.
This uptick in performance highlights the continued resilience of Nigeria’s stock market, with investors showing renewed optimism in large-cap stocks.
Join our WhatsApp ChannelEquity Market Sees Higher Trading Activity
Trading volumes in the Nigerian equity market also experienced a boost, with shares traded rising by 9%. A total of 304 million shares were exchanged in 6,950 deals, surpassing the previous day’s 277 million shares. The market capitalisation stood at N56.08 trillion.
“This positive movement is a reflection of investor confidence in key sectors of the economy,” said a stockbroker who participated in the day’s trading. “We’ve seen increased interest in sectors like banking and manufacturing, with particular focus on firms that have shown consistent growth.”
Top Performers in the Equity Market
STERLINGNG and CONHALLPLC led the equity market, posting impressive gains of 9.47% and 9.45%, respectively. STERLINGNG’s stock price closed at N4.98, while CONHALLPLC’s value rose to N1.39. Other strong performers included MECURE, which gained 1.39%, and REGALINS, up 9.09%.
FIDSON also stood out, rising by 8.24% to close at N15.10.
One investor said, “We’ve seen significant gains from stocks like STERLINGNG, and the market sentiment remains positive going into the next quarter. Many are hopeful that this trend will continue.”
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Equity Market Losers: DEAPCAP, NEM, and DAARCOMM Drop
However, not all stocks in the equity market fared well. DEAPCAP saw the biggest loss, dropping 9.93% to N1.36. NEM and DAARCOMM followed closely with declines of 9.71% and 9.52%, respectively.
TANTALIZER also struggled, falling by 9.09% to N0.60, while DANGSUGAR dropped 3.13% to N31.00.
Analysts believe that profit-taking and general market corrections are behind some of the day’s losses. “It’s typical for some stocks to experience declines after a sustained period of gains,” said an analyst. “However, the overall trend in the equity market remains upward.”
Banking Stocks Lead Trading Volume
Banking stocks dominated the day’s trading volume, with ACCESSCORP leading the way with 68.25 million shares traded. FIDELITYBK followed closely with 43.15 million shares, while UBA recorded 25.43 million shares.
ZENITHBANK and STERLINGNG also saw significant activity, trading 19.73 million shares and 12.45 million shares, respectively.
The value of transactions also remained high, with ACCESSCORP reporting N1.3 billion worth of trades. ZENITHBANK posted N739.1 million, while UBA and FIDELITYBK recorded N675.9 million and N630.12 million, respectively.
SWOOT and FUGAZ Stocks Show Mixed Results
The SWOOT stocks—comprising major players like AIRTEL, BUA CEMENT, BUA FOODS, GEREGU POWER, SEPLAT, and DANGOTE CEMENT—remained steady, showing little to no movement in their stock prices.
In contrast, the FUGAZ stocks, which include major Nigerian banks, had mixed performances. UBA and ZENITHBANK experienced minor declines of 0.19% and 0.13%, respectively, while GTCO, FBNH, and ACCESSCORP posted gains. GTCO rose by 2.19%, FBNH by 1.76%, and ACCESSCORP by 1.29%.
Equity Market Outlook Remains Positive
Looking ahead, analysts are optimistic that the All-Share Index will maintain its bullish trajectory. “We expect the ASI to break through the 99,000-point barrier in the coming weeks,” said a market analyst. “The current positive sentiment, particularly around large-cap stocks, should continue to drive the market upwards.”
Investors are keeping a close watch on global market trends and domestic economic policies that may further impact the Nigerian equity market. With the current momentum, the market is poised for continued growth.
