tock market index hits 100,000 record index
admin
The Nigerian stock market crossed a new milestone yesterday as the country’s share pricing gauge hit 100,000 index mark, a new record and major reference point.
The All Share Index (ASI)- the value-based common index that tracks all share prices at the Nigerian Exchange (NGX), rode on the back of continuing intensive bargain-hunting in large and mid-cap companies to close yesterday at 101,571.11 points. It had opened at 98,616.97 points.
The rally was driven by upwardly pricing of major companies in the cement and food manufacturing sectors.
ASI, widely regarded as representative of Nigeria’s sovereign equities index- a measure of the country’s stock market mood, recorded average return of 3.0 per cent or 2,954.14 points yesterday, equivalent to net capital gain of N1.62 trillion.
Aggregate market value of all quoted equities at the NGX rose simultaneously from its opening value of N53.967 trillion to close at N55.584 trillion.
Analysts were unanimous that the 100,000 index mark was a milestone for the Nigerian market.
Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, said it was a historic moment for the market.
“It’s really historic given that we’ve not been here before. What’s even more remarkable is that the market is still standing very stable and firm despite the bullishness that have taken us to this point,” Amolegbe, former president of Chartered Institute of Stockbrokers (CIS), said, referring to a bullish run that had seen Nigerian equities as one of the three best-performing global stock markets.
The Nigerian equities market closed 2023 with average return of 45.90 per cent, equivalent to net capital gains of N12.81 trillion. It closed yesterday with average year-to-date return of 35.8 per cent, implying that average investors have seen their portfolios grown by more than one-thirds so far this year.
“This rally will only be useful at end of the day if it translates into capital formation for the productive economy. With this rally, a conducive environment has emerged for capitalization of strategic sectors of the productive economy. Before it fizzles out, let issuers seize the opportunity,” Adonri said.
Afrinvest Securities described the index mark as “a new record milestone”, expressing optimism that the market will sustain “extended positive performance”.
Cordros Securities said the index point was “the highest point on record”, attributing the rally to continuing bargain-hunting by investors.
CardinalStone described the 100,000 index as a “psychological mark” and a “new high”, spurred primarily by bullish sentiments in cement and food heavyweights.
The gains yesterday was largely driven by Dangote Cement, BUA Cement, BUA Foods, NASCON Allied Industries and Flour Mills of Nigeria.
There were 35 gainers to 32 losers. Wapic Insurance recorded the highest gain of 10 per cent to close at 88 kobo. BUA Cement followed with a gain of 9.98 per cent to close at N179.65. Japaul Gold & Ventures rose by 9.91 per cent to close at N2.55 per share. University Press appreciated by 9.82 per cent to close at N3.69 while Tripple Gee & Company rose by 9.69 per cent to close at N2.83.
On the negative side, NEM Insurance led the losers with a drop of 10 per cent to close at N7.20. Cadbury Nigeria followed with a decline of 9.96 per cent to close at N23.50. The Initiates Plc (TIP) declined by 9.92 per cent to close at N2.27. May & Baker Nigeria lost 9.89 per cent to close at N6.65 while McNichols lost 9.88 per cent to close at N1.46.
The momentum of activities slowed down considerably. Total turnover decreased by 34.65 per cent to 488.491 million shares valued at N8.037 billion in 12,080 deals. Transnational Corporation (Transcorp) topped the activity chart with 95.109 million shares valued at N1.588 billion. Universal Insurance followed with 45.629 million shares worth N18.601 million. Unity Bank traded 27.343 million shares valued at N74.120 million. Jaiz Bank traded 26.962 million shares valued at N76.917 million while Japaul Gold & Ventures transacted 25.324 million shares worth N64.312 million.
