The equity market opened the new week on a bullish note following renewed interest in banking stocks.
The financial services sector experienced a downturn in the past week on the Nigerian Exchange Limited due to retracement in the prices of key stocks such as Ecobank Transnational Incorporated, NEM Insurance, United Bank for Africa, FCMB Group and AIICO, not to mention investors’ appetite for stocks listed on the industrial goods index.
However, at the close of trading on Monday, sub-sector indices showed bullish results, with the banking index leading gainers with a two per cent increase, driven by buy pressure in Wema Bank, Zenith Bank, UBA, Access Holdings, and Fidelity Bank Plc.
The Insurance sector recorded a gain of 1.48 per cent, while the Consumer and Industrial Goods indexes saw mild gains of 1.09 per cent and 0.11 per cent, respectively. The Oil/Gas sector was the sole loser declining by 0.23 per cent, primarily due to sell sentiments in Eterna Plc.
At the close of trading, the benchmark index of the NGX rose by 0.70 per cent to reach 102,044.84 points, reflecting a year-to-date return of 36.47 per cent.
The positive trading propelled the market capitalisation to N57.6tn resulting in investors gaining about N404bn.
Market sentiments were also positive as 34 securities recorded gains compared to 16 losers.
The gainers include Honeywell Flourmill and NEM Insurance which gained 10 per cent each to close at N3.74 and N6.05. Dangote Sugar stocks also appreciated. It rose by 9.97 per cent to close at N61.20.
Conversely, Prestige Assurance, LASACO and UAC Nigeria lost 10 per cent, 9.83 per cent and 9.68 per cent to close at N0.54, N2.11 and N12.60 per unit, respectively.
Overall, trading activities across the stock market displayed positive sentiment.
With total deals and volume rising by 5.17 per cent and 22 per cent to 11,344 trades and 436.90 million units. However, the total value declined by 13.98 per cent to N17.10bn.
The shares of Guaranty Trust Holding Company emerged as the most traded security by volume, with 96.63 million units exchanged in 493 trades, while Transcorp Power which was listed last Monday emerged as the most traded security in terms of value totaling N5.93bn.
