Stock Market Records Large Gain as Inflation Worries Slowdown

Stock Market Records Large Gain as Inflation Worries Slowdown

Stock market records large gain as investors wealth expanded by more than N192 billion amidst a slowdown in inflation worries, according to data from the National Bureau of Statistics.

This marked the fifth consecutive weekly gain as strong buying interest in FBNH (+29.6%), OKOMUOIL (+8.2%) and GTCO (+3.5%)  drove the All-Share Index 1.4% higher to close at 41,438.15 points.

Consequently, the month to date and year to date returns rose to +3.0% and +2.0%, respectively, following the bullish reaction from investors on 30 stocks.

Specifically noted is the fact that the All-Share Index increased by 308.17 basis points, a growth of 0.75 per cent to close at 41,438.15 points as investors fear over inflation dissolves.

The equity segment of the Nigerian Exchange market capitalisation gained ₦192.54 billion, a surge of 0.90 per cent to close at ₦21.43 trillion as NGX Group Plc listed 1.96 billion units by Introduction.

However, Atlass Portfolios Limited said the market activities traded negatively following the 19.72 per cent and 22.25 per cent decline in the total volume and value traded.

A total sum of 728.96 million units of shares valued at ₦8.53 billion was transacted from 4,852 Deals.

Again, FBNH topped the traded stocks in terms of volume, accounting for 65.37 per cent of the total volume of trades, maintaining the position as the most trading stock, followed by UNIVINSURE (5.44%), GTCO (4.55%), FIDELITYBK (3.00%), and TRANSCORP (2.85%) to complete the top five on the volume chart.

Also, FBNH appeared as the most traded stock in value terms, with 69.50 per cent of the total value of trades on the exchange.

SCOA led the gainers’ chart to emerge as the most profitable stock, with price appreciation of 9.20 per cent, trailed by CUSTODIAN (8.96%), FBNH (8.09%), PRESCO (4.71%), GTCO (3.86%), BUACEMENT (3.05%), ETI (2.22%), NB (1.91%), UBA (0.61%), TOTAL (0.52%) and 20 others.

On the contrary, 8 stocks declined in price led by CHAMS with price depreciation of 8.33 per cent to close at ₦0.22, as WAPCO (-4.74%), AFRIPRUD (-3.62%), STERLNBANK (-3.18%), JAPAUGOLD (-2.08%), and FIDELITYBK (-1.79%) also follow suit.

Today, market breadth closed significantly positive, recording 30 gainers and 8 losers.

In the coming week, analysts at Cordros Capital said they are expecting investors’ sentiment will be shaped by Q3 earnings releases and the outcome of the bond auction scheduled to hold on Wednesday as they seek clarity on the movement of yields in the Fixed Income market.

As a result, analysts envisage a mixed trading pattern due to bargain hunting activities in dividend-paying stocks amid intermittent profit-taking activities.

Notwithstanding, the firm reiterates the need for positioning in only fundamentally sound stocks as the weak macro environment remains a significant headwind for corporate earnings.  #Stock Market Records Large Gain as Inflation Worries Slowdown