NGX ASI Sustains Momentum as Equities Investors Gain N197.41bn

Samuel Mobolaji

The Nigerian stock market on Tuesday continued its upward trajectory, with the All-Share Index (ASI) rising by 33 basis points to close at 98,540.93 points, while the overall capitalisation rose by N197 billion, following price uptick in Aradel Holdings Plc and 14 others.

This sustained momentum was largely driven by gains in key stocks such as GTCO (+3.21 per cent), OANDO (+7.93 per cent), and ACCESSCORP (+1.28 per cent), which helped offset losses from FBNH (-0.76 per cent) and STANBIC (-7.11 per cent).

As a result, the year-to-date return increased to 31.79 per cent, bringing market capitalization up by N197.41 billion to a total of N59.71 trillion.

Yesterday’s market activity saw a notable improvement, with the value of transactions rising by 36.07 per cent compared to the previous session. In total, 286.04 million shares valued at N26.82 billion were exchanged in 9,650 deals.

ACCESSCORP led in trading volume with 45.95 million shares traded, while SEPLAT remained flat at N1.18 billion, leading the value chart.

Despite the overall gains, market breadth closed negative, with a ratio of 0.52-to-1, indicating that more stocks declined than advanced. CAVERTON (-10.00 per cent) topped the laggards, while CHAMPION (+9.97 per cent) led the day’s gainers.

Investors looking for opportunities can take confidence in the continued upward trend but should remain cautious as some key stocks face downward pressure.

Looking ahead, United Capital said, “We expect mixed sentiments to persist in the equities market. As a result of the stubborn nature of inflation, particularly fuelled by elevated exchange rate environment. We expect this hike to play a background role in the market, with investors and equity-biased fund managers adopting a more cautious approach to trading.

“This approach involves a strict restriction of trading activities to only equities with solid fundamentals who are set for sustained profitability in full year, 2024 financials. In the same vein, corporates with pending corporate actions will continue to outperform (in terms of positive market sentiments), presenting trading opportunities (in-and-out scenarios).”