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Investors net worth further increases by ₦899bn on NGX

Analysis of the market outlook by some financial experts revealed that trade on the Exchange appreciated due to a wave of “buy the hype.”
Trading activities on NGX close flat.
Trading activities on NGX close flat.

Investors' net worth on the Nigerian Exchange Ltd. (NGX) further appreciated by ₦899 billion or 2.11 per cent to end trading for the week.

Specifically, market capitalisation closed at ₦43.593 trillion as against ₦42.694 trillion recorded on Thursday.

Also, the All-Share Index (ASI) earned 2.11 per cent or 1,644 points to settle at 79,664.66, as against 78,020.54 recorded in the previous session.

Consequently, the Year-To-Date (YTD) return rose by 6.54 per cent, as investors traded 892.68 million shares valued at ₦14.33 billion in 13,019 deals.

The market breadth was positive as a result of investors buying interest in the shares of Dangote Cement, MTN Nigeria, and Zenith Bank.

Meanwhile, on the activity chart, Fidelity Bank led in volume with an exchange of 92.668 million shares valued at ₦1.31 billion.

It was followed by Transcorp with 75.430 million shares of deals worth ₦954.95 million.

Sterling Bank exchanged 71.553 million shares valued at ₦399.96 million, while FCMB traded 56.850 million shares valued at ₦541.82 million.

Also, UBA exchanged 45.983 million shares valued at ₦131.72 million.

On the gainer’s chart, Nigerian Aviation Handling Company Plc (NAHCO) and UPDC Real Estate Investment Trust (UPDCREIT) led in percentage terms of 10 each to close at N28.60 and N1.65 per share, respectively.

Transcorp and Wema Bank also gained 9.99 per cent each to close at ₦12.66 and ₦7.38 per share respectively, while Transcorp Hotel made a profit of 9.92 per cent to close at ₦84.85 per share.

Conversely, Multiverse Mining and Exploration led the looser’s chart with 9.99 per cent to close at ₦18.20.

SCOA Nigeria trailed with 9.94 per cent to close at ₦1.63, while Abbey Mortgage Bank lost 9.86 per cent to close at ₦2.65 per share.

UPDCREIT also shed 9.33 per cent to close at ₦6.30 and Wapic Insurance declined by 8.97 per cent to close at 71k per share.

However, analysis of the market outlook by some financial experts revealed that trade on the Exchange appreciated due to a wave of “buy the hype”, and the ASI may hit the 80,000 mark in the coming weeks.

Adetola Freeman, Regional Analyst, FBS Africa, noted that while the ASI may hit the 80,000 mark, underlying economic factors could cause a decline in the enthusiasm of investors subsequently.

Freeman said this may also pressure existing shareholders to sell off their holdings

He noted that the fact that the current market outlook is extremely positive could be another cause for smart money investors to take a pause.

Freeman stated that this would later lead to a bullish run before the end of the first quarter and give birth to a new batch of investments.

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