The euphoria seen on the Nigerian Equity Market on Monday heightened on Tuesday, as buying pressure intensified. The All Share Index recorded the highest daily gain since April 2015, as the Index advanced by 4.92%; more than double the rise of 2.11% recorded on Monday.
The All Share Index jumped by 1,355 points to close at 28,909.37, the highest level recorded since February 2020 buoyed by strong gains in bellwethers like DANGCEM, MTNN, ZENITHBK among others, taking YTD return to 7.7%.
Investors wealth rose by N708.175 billion with the market capitalization soaring to N15.110 trillion on Tuesday.
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18 stocks advanced by more than 8% including PRESCO (+10.00%), DANGCEM (+9.86%), ZENITHBANK (+9.47%). Other stocks with over 8% rise include FBNH, UBA, ACCESS, INTBREW, WAPCO, UACN, OANDO etcetera.
14 equities gained from 5% to 8% including MTNN (+5.7%), GUARANTY (+6.06%), NB (+7.17%). Others include PZ, ETI, GUINNESS, FIDELITYBK etcetera.
13 equities rose by less than 5% among them are STANBIC, JBERGER, DANGSUGAR, and FLOURMILL.
The activity level improved further from the levels seen on Monday. The volume and value of traded stocks rose by 24.10% and 27.89% to 749.468 million and N9.495 billion respectively.
The top five most traded equities by volume were banking stocks. with ZENITHBANK leading with 135.699 million units of shares valued at N2.772 billion traded in 1,047 deals. It is followed by UBA, FBNH, ACCESS, and GUARANTY.
In terms of value, ZENITHBANK was followed by GUARANTY and UBA.
Performance of Indices
All five indices under our watch recorded gains, with the banking index advancing by a wider margin.
- The Banking Index was up by 7.5%%
- The Industrial Goods Index advanced by 5.6%%
- Consumer Goods Index grew by 3.0%
- The Oil and Gas Index rose by 1.2%
- The Insurance Index increased by 0.3%
Investor sentiment as measured by market breadth (gain/loss ratio) was strong at 5.62x as 45 stocks advanced with only 8 equities declining.
The top five gainers by percentage and closing prices are;
- CORNERST rose by 10.00% to close at N0.66
- INTBREW rose by 10.00% to close at N4.29
- PRESCO rose by 10.00% to close at N60.50
- FBNH rose by 9.91% to close at N6.10
- NNFM rose by 9.88% to close at N4.45
The top five decliners by percentage are;
- NPFMCRFBK lost 8.76% to close at N1.25
- WAPIC lost 7.69% to close at N0.36
- ACADEMY lost 6.90% to close at N0.27
- BERGER lost 6.15% to close at N0.61
- NEIMETH lost 2.00% to close at N1.85
Naira value remained stable against the dollar at N458/$1 on Tuesday at the parallel market.
Global Market performance;
All major Global Indices recorded mixed performance on Tuesday. Wall street recorded slight gains at the opening of trade, although the market trend turned negative after President Trump said he is ending stimulus negotiations and will only resume talks after the election.
- Dow Jones closed down by 1.34%
- S&P 500 lost 1.40%
- NASDAQ 100 lost 1.89%
- FTSE 100 was up by 0.12%
- DAX was up by 0.61%
- NIKKEI 225 up by 0.52%
As the release of Q3 2020 earnings is around the corner, we expect the rebound seen in the market to continue for fundamentally sound stocks, as investors take position ahead of the earnings release season amid potential profit-taking.
By; Ifunanya Ikueze