The Nigerian stock market kicked off the week on a strong note, with investors’ investments increasing by N851 billion ($2.07 billion). This surge was led by the impressive performance of Dangote Cement Plc and 70 other companies.
The All-Share Index (ASI) experienced a significant gain of 1,563.28 points, representing a 2.48% increase. This surge marked the highest point since March 17, 2008, with the ASI closing at 64,603.69 points. Additionally, market capitalization rose by N851 billion, closing at N35.177 trillion.
The surge in the stock market was largely driven by the depreciation in the prices of large and medium capitalization stocks. Dangote Cement, Conoil, MRS Oil Nigeria, MTN Nigeria Communications (MTNN), and Stanbic IBTC Holdings were among the major contributors to the market’s upturn.
Market analysts from United Capital Plc predict that the bullish sentiments in the equities market will continue due to its attractiveness compared to the depressed rates in the fixed-income market. They also believe that positive sentiments surrounding new policies will drive further market rallies. Additionally, investors are expected to position themselves ahead of the upcoming Q2, 2023 earnings season.
Based on market breadth, 71 stocks recorded gains while 19 stocks recorded losses. Notable gainers include DAAR Communications, Dangote Cement, MRS Oil Nigeria, Neimeth International Pharmaceuticals, and Jaiz Bank, which all saw a 10% increase in their share prices.
On the losers’ side, Pharma Deko, Union Dicon Salt, and Berger Paints Nigeria were among the stocks that experienced a decline in their share prices.
The volume of trades also saw a significant increase, rising by 49.80% to 1.839 billion units, valued at N22.033 billion ($53.52 million), and exchanged in 14,584 deals. FBN Holdings (FBNH), Universal Insurance, Sterling Financial Holdings Company, Transcorp, and AIICO Insurance were the most actively traded stocks.
The opening of the week with impressive gains in the Nigerian equities market reflects the positive sentiment among investors. As market conditions remain favorable, analysts expect the rally to continue. However, it is important for investors to exercise caution and conduct thorough research before making investment decisions.
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