Large-cap Stock Drives Local Bourse To N180bn Gains

The Nigerian stock market sustained its bullish run, driven by the share price appreciation of Geregu Power Plc and 27 others.

The All Share Index (ASI) rose by 330.85 absolute points, representing a gain of 0.61 per cent to close at 54,646.38 points. Accordingly, investors gained N180 billion in value as market capitalisation went up to N29.769 trillion.

The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which are; Geregu Power, BUA Foods, MRS Oil Nigeria, Nigerian Exchange Group and Nigerian Breweries.

Capital market analysts expected that,  “sustained bullish sentiments as we anticipate downbeat money market yields till Q2, 2023 and a gradual decline in trading volumes in the coming days. 

“However, as technical indicators point to more significant downside potential for equities, we consider buying equities a ‘riskier’ rather than a ‘wrong’ strategy while favouring reducing portfolio exposures as the ideal approach. Equity stakeholders can look to book profits off stocks that have crossed the overbought region, as the RSI indicates.”

Market breadth closed positive as 28 stocks posted gains while 10 declined. MRS Oil Nigeria recorded the highest price gain of 9.88 per cent to close at N27.80, per share. McNichols followed with a gain 9.09 per cent to close at 60 kobo, while BUA Foods rose by 8.87 per cent to close at N81.00, per share.

Cornerstone Insurance went up by 8.33 per cent to close at 65 kobo, while Transcorp Hotels appreciated by 7.44 per cent to close at N6.50, per share. On the other hand, The Initiates Plc (TIP) led the losers’ chart by 9.09 per cent to close at 40 kobo, per share. 

Neimeth International Pharmaceuticals followed with a decline of 6.45 per cent to close at N1.45, while Consolidated Hallmark Insurance went down by 6.15 to close at 61 kobo, per share. 

Veritas Kapital Assurance lost 4.76 per cent to close at 20 kobo, while AIICO Insurance shed 1.67 per cent to close at 59 kobo, per share.

The total volume traded decreased by 4.12 per cent to 124.561 million shares, worth N1.807 billion, and traded in 2,600 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 32.420 million shares valued at N272.124 million. Courteville Business Solutions followed with 15.976 million shares worth N7.639 million, while Zenith Bank  traded 11.526 million shares valued at N292.131 million.

Guaranty Trust Holding Company (GTCO) traded 8.620 million shares valued at N217.946 million, while Chams Holding Company transacted 6.723 million shares worth N1.742 million.