NGX Rallies as Investors Put More Money in Banking Stocks

(FILES) This file photo taken on January 28, 2016 shows shows naira banknotes, Nigeria's currency, in Lagos. Nigeria's shortage of foreign currency nightmare goes on and affects now the whole country's economy. / AFP PHOTO / PIUS UTOMI EKPEI

The Nigerian Exchange (NGX) rallies on Tuesday as equity investors put more money into banking stocks, thus reverses the previous day’s negative sentiment. Today’s fresh rallies lifted the equity market indices 0.45 per cent following the renewed buying interest in most stocks that declined yesterday.
Following the improved sentiments ahead of the release of the third-quarter results for 2021, investors put more money in BUACEMENT, FBNH, ETI and STANBIC, Cowry Asset Limited said in a market report.
This keeps key market indices positive as a year to date return inches higher amidst the call for devaluation of the Naira and expectation of a further slowdown in headline inflation.
The All-Share Index increased by 182.74 basis points, representing a growth of 0.45 per cent to close at 40,896.96 points, according to an equity market report from Atlass Portfolios limited.
Similarly, the Nigeria stock market capitalisation advanced by ₦95.34 billion, a surge of 0.45 per cent to close at ₦21.31 trillion on Tuesday. Data shows that the market activities traded positively as total volume and value traded appreciated by 194.75 per cent and 96.72 per cent, respectively. A total of 563.88 million units of shares valued at ₦5.10 billion were traded in 4,253 Deals.
However, FBNH outdid the traded stocks in terms of volume, accounting for 56.28 per cent of the total volume of trades, maintaining the position as the most trading stock. This was followed by CHAMPION (8.85%), ETI (6.75%), UBA (4.00%), and FIDELITYBK (2.94%) to complete the top five on the volume chart.
Also, FBNH appeared as the most traded stock in value terms, with 64.65 per cent of the total value of trades on the exchange.
On the profitability list, CHAMPION led the gainers’ chart to emerge as the most profitable stock, with price appreciation of 10.00 per cent, trailed by FBNH (9.79%), ETI (7.25%), AFRIPRUD (4.00%), BUACEMENT (1.79%), ACCESS (1.59%), UBA (1.26%), DANGSUGAR (1.15%), STANBIC (0.79%), GTCO (0.71%) and 16 others.
On the contrary, CHIPLC topped the losers’ chart as its share price dipped by 6.78 percent to close at ₦0.55, as NEM (-3.81%), OANDO (-3.46%), HONYFLOUR (-2.03%), WAPCO (-1.63%), UCAP (-1.10%), FCMB (-0.33%), and CAP (-0.25%) amongst others also declined in price.
Also, the Exchange recorded a higher number of gainers (27) as against that of the losers (13) to lift the year-to-date gain of the local bourse to 1.56%. Banking-sector stocks’ dominance in the equities market was sustained as FBNH recorded transactions worth N3.29 billion today.
Hence, the NSE Banking index rose by 1.00%. Also, the NSE Insurance, the NSE Industrial and the NSE Consumer Goods indices rose by 1.02%, 0.06% and 0.51% respectively.
However, the NSE Oil/Gas index fell by 0.71%. Meanwhile, market activity was stronger as investors traded with much optimism ahead of the release of 9m-2021 financial results. Thus, the volume and value of stock traded ballooned by 194.75% and 96.72% to 0.56 billion units and N5.10 billion respectively.
Elsewhere, the Nigerian Interbank Offer Rate Fixing (NIBOR) fell for all tenor buckets tracked on sustained financial system liquidity boost while Nigerian Interbank Treasury Yield Fixing (NITTY) moved northwards for all maturities ahead of tomorrow’s primary market auction.
In the OTC bonds market, the values of FGN bonds traded flat for most all maturities tracked. However, the value of FGN Eurobond maintained free fall for moRtst maturities tracked on bearish sentiment. #NGX Rallies as Investors Put More Money in Banking Stocks