On Tuesday, the Nigerian capital market experienced a gain of N510 billion, closing at N39.69 trillion, a notable increase from Monday’s N36.21 trillion.
This led to a growth of 0.51 percent in market capitalization, propelling the market to achieve a 15-year peak.
Furthermore, the Nigerian Exchange Ltd.’s (NGX) All-Share Index (ASI) saw a 0.51 percent upswing, reaching 66,490.34 points from Monday’s 66,151.38. This exceeded the previous peak of 66,371.20 points registered on March 5, 2008.
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This notable achievement was partially credited to the uptick in banking stocks, as investors tactically positioned themselves to capitalize on the impressive earnings recently reported by banks.
Within the array of sectoral indices, the NGX Banking Index exhibited the most substantial daily growth, rising by 1.63 percent. Trailing closely were the NGX Consumer Goods Index, marking a 0.99 percent upsurge, and the NGX Industrial Index, registering a 0.21 percent increase.
However, the NGX Oil and Gas Index experienced a minor decline of 0.09 percent, while the NGX Insurance Index underwent a notable reduction of 1.56 percent, both attributed to investors reshuffling their investments.
An examination of the day’s market activities showed a notable surge in trade turnover compared to the previous session, witnessing transaction values rising by an impressive 79.18 percent.
Consequently, the cumulative volume of traded stocks reached 436.95 million units, with a value of N7.02 billion, executed through 7,933 deals.
This marked a significant boost from the 311.12 million units valued at N3.92 billion traded in 7,193 deals on Monday.
At the forefront of the activity chart was FBN Holdings, accounting for 55.15 million units valued at N911.21 million. Following closely was Japaul Gold, selling 33.11 million units worth N29.92 million, while UBA executed 30.17 million units valued at N41.21 million.
Market breadth concluded on a positive note, with 35 stocks witnessing appreciation in value, while 32 stocks experienced depreciation.
Champion Breweries led the group of gainers with a notable 10 percent augmentation in stock value. Conversely, Linkage Assurance headed the cluster of 32 declining securities, with a 10 percent decrease in stock value.
Experts evaluating the market’s performance attributed the robust showing to a blend of factors. These factors encompassed investor sentiment influenced by macroeconomic events, including the establishment and inauguration of the economic cabinet by President Bola Tinubu.
Furthermore, fluctuations in yields within the fixed income market contributed to shaping market dynamics.
They underscored the significance of strategically positioning investments in fundamentally sturdy stocks, considering the ongoing challenges posed by the feeble macroeconomic environment on corporate earnings.
And hopefully, one day we could attract companies like PDD in NGX.
Shares in PDD Holdings, the parent of shopping networks Pinduoduo and Temu, surged over 15% in New York trading on Tuesday after the company reported a 47% jump in net income. Executives are bullish on Chinese consumers despite the country’s broad economic slowdown, with co-CEO Zhao Jiazhen noting “consumers’ increasing willingness to shop.” The company did not share details on Temu, its buzzy service that was the top shopping app in the U.S. over the last three months. (Fortune newsletter)