Nigerian Stock Market Crosses 80,000 Points, Gains 0.83% Amidst Buying Spree

The Nigerian Exchange Limited (NGX) All-Share Index soared past a significant milestone on Monday, crossing the 80,000 basis point mark to settle at 80,324.53. This 0.83% gain, translating to 660 points, signifies a strong rebound from Friday’s close of 79,664.66.

Consequently, the equity market capitalization witnessed a corresponding rise, ending the day at N43.597 trillion, compared to N43.593 trillion recorded previously. The Year-To-Date (YTD) return also benefited, jumping 7.42% as a total of 1.19 billion shares valued at ₦15.26 billion were exchanged in 16,081 deals.

A closer look at today’s market activities reveals that buy interest in Tier-1 banks – Zenith Bank, Fidelity Bank, Guaranty Trust Company, and United Bank of Africa (UBA) – fueled the market’s upward trajectory. Trade turnover was higher compared to the previous session, with 53 equities recorded on the gainers’ list and 13 on the losers’ list.

Transcorp topped the volume chart, exchanging 298.30 million units valued at N4.08 billion, followed by First City Monumental Bank (FCMB) with 106.05 million units valued at N1.1 billion. Fidelity Bank also saw significant activity, exchanging 87.7 million units valued at N1.2 billion, while Sterling Nigeria traded 62.55 million units valued at N3.95 billion. Interestingly, Unity Bank exchanged a noteworthy 32.57 million shares valued at N8.23 billion.

Omatek, Cornerstone Insurance, Julius Berger, Jaiz Bank, and LASACO Assurance led the gainers’ table in percentage terms, each soaring 10% to close at 99k, N1.87, N46.75, N2.53, and N2.42 per share respectively.

Conversely, Daar Communications took the lead among the losers, shedding 9.30% to close at 12k. Eterna followed closely behind, depreciating 8.79% to close at N1.45, while CWG Plc trailed with a 7.05% decline to 63k per share. PZ Cussons also witnessed a 6.90% drop to N2.00, and Fidelity Bank closed 5.99% lower at 85k per share.

Looking ahead, some financial experts predict that the “buy the hype” sentiment could continue propelling the NGX even further, potentially reaching 85,000 in the coming weeks. However, analysts like Mr. Adetola Freeman from FBS Africa caution that underlying economic factors could dampen investor enthusiasm later, potentially triggering a bearish correction.