Equities market at the Nigerian Exchange Limited (NGX) kicked off the week on a bullish note, hitting 2 years high, the most significant single-day gain since 12 November 2020, as the All Share Index (ASI) settled at 55,745.74 basis points.
The bullish trade on Tuesday was driven by investor confidence following President Bola Ahmed Tinubu’s announcement of his pro-market policies, evidence in its proclamation of his commitment to jump-start the economy through measures such as the removal of fuel subsidies and the unification of exchange rates.
Accordingly, the Month-to-Date and Year-to-Date gains advanced to +6.4 per cent and +8.8 per cent, respectively.
Investors displayed strong demand for banking, consumer goods, and industrial stocks, anticipating the potential benefits of unified exchange rates, which would alleviate forex and liquidity pressures on their operations.
Big lenders such as Zenith Bank, United Bank for Africa, Access Holdings and Guaranty Trust Bank Holding Company were at the forefront of the upward trend among banking stocks as they appreciated by 10.0 per cent, 9.68 per cent, 8.33 per cent and 6.91 per cent, respectively.
In response to the remarks of President Tinubu on petrol subsidy removal energy stocks such as Eterna Oil, Conoil, Total Energies and Oando traded higher having appreciated in share value by 10.0 per cent, 9.91 per cent, 9.24 per cent and 5.36 per cent, respectively.
Also, consumer staples, brewery, and cement majors’ shares, such as Nigerian Breweries, Nestle Nigeria, Dangote Cement, Lafarge Africa, BUA Foods and BUA Cement also recorded appreciations by 100 per cent, 8.89 per cent, 7.41 per cent, 6.52 per cent, 5.13 per cent and 4.55 per cent, respectively.
Telco giant MTN Nigeria Communication, as well as oil palm producers Okomu Oil price and Presco also enjoyed investors’ patronage having appreciated in share value by 7.53 per cent, 9.62 per cent and 4.63 per cent, respectively.
As measured by market breadth, market sentiment was positive as 64 tickers gained relative to 12 losers. On the performance board, Jaiz Bank and Nigerian Breweries recorded the highest gains of the day having appreciated in share value by 10.0 per cent, respectively; while Ikeja Hotel and NCR topped the losers’ list after their respective share prices dipped by 10.0 per cent and 9.8 per cent.
Across the sectoral gauges, performance was positive, as the NGX Banking, NGX Insurance, NGX Consumer Goods, NGX Oil/Gas, and NGX Industrial indices advanced by 8.20 per cent, 2.29 per cent, 6.48 per cent, 4.04 per cent, and 6.08 per cent, respectively.
Analysis of market activities on Tuesday showed that trade turnover settled higher relative to the previous session, with the value of transactions up by 106.07 per cent. A total of 1.08 billion shares valued at N15.80 billion were exchanged in 9,916 deals.
Access Holdings led the volume and value charts with 199.62 million units traded in deals worth N2.45 billion.
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