Banking Stocks Lift NGX Index As Investors Gain N339bn

Investors’ appetite for banking stocks on the trading floor of Nigerian Exchange Limited (NGX) yesterday lifted the All-Share Index (ASI) from the negative region even as investors gained N339 billion.

The rebound therefore, ended two days of losing streak as investors continued to focus on fundamentally sound stocks, impressive Half Year (HY) 2023 results and dividend payment from banks such as Zenith Bank and UBA which filed their results to the investing community.

The All Share Index (ASI) gained by 618.68 points, representing a growth of 0.93 per cent to close at 67,378.88 points. Accordingly, market capitalisation rose by N339 billion to close at N36.877 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Dangote Sugar Refinery, NASCON Allied Industries, Transcorp Hotels, Nigerian Aviation Handling Company (NAHCO) and Guaranty Trust Holding Company (GTCO).

Reacting to this development, analysts at Afrinvest, said that they expect a positive performance on the local bourse as investors hunt for bargains amid improved sentiment.

As measured by market breadth, market sentiment was positive as 34 stocks gained relative to 23 losers. Dangote Sugar Refinery, NASCON Allied Industries, NAHCO and United Capital recorded the highest price gain of 10 per cent each to close at N57.20, N51.70, N23.65 and N16.59 respectively, per share.

Transnational Corporations (Transcorp) followed with a gain of 9.98 per cent to close at N6.61, while CWG rose by 9.96 per cent to close at N7.62, per share.

On the other hand, Courteville Business Solutions led the losers’ chart by 10 per cent, to close at 54 kobo, per share. Associated Bus Company followed with a decline of 9.80 per cent to close at 92 kobo, while Tantalizers declined by 9.30 per cent to close at 39 kobo, per share.

Learn Africa depreciated by 8.51 per cent to close at N3.01 and Omatek Ventures, Regency Alliance Insurance and and Royal Exchange declined by 8.33 per cent each to close at 44 kobo, 33 kobo and 55 kobo respectively, per share.

The total volume of trade declined by 11.8 per cent to 569.63 million units, valued at N8.70 billion, and exchanged in 8,404 deals. Transactions in the shares of Oando topped the activity chart with 143.445 million shares valued at N1.395 billion. Access Holdings followed with 63.557 million shares worth N1.071 billion, while Fidelity Bank traded 39.553 million shares valued at N313.782 million.

Transcorp traded 32.611 million shares valued at N209.176 million, while United Bank for Africa (UBA) sold 30.677 million shares worth N464.756 million.