New Telegraph

Large Cap Stocks Drive NGX Beyond 100,000 Points, Hit N56trn

The rally in Nige- ria’s equity market continued yesterday as the AllShare Index of Nigerian Exchange Limited hit 101,571.11, surpassing the 100,000 mark just as the market capitalisation hit N55.58 trillion. Bluechip stocks including Dangote Cement, BUA Cement, BUA Foods continue to drive major gains seen on the Exchange.

Year-to-date, the domestic market has returned 35.84 per cent, surpassing inflationary levels in the country and outperforming other indices in the African, European and Middle Eastern markets as tracked by Bloomberg. Total value of stocks traded by investors was N8.04 trillion, a 51 per cent drop from the value traded in the previous day.

Leading conglomerate, Transnational Corporation Plc, was the most liquid stock on NGX as investors exchanged N1.6 trillion worth of its stock in 1,207 deals on Wednesday. BUA Cement, Dangote Cement, United Bank for Africa and Zenith Bank also formed part of the top five traded stocks by volume.

According to analysts and industry watchers, all eyes are now on the Central Bank of Nigeria as it plans to hold its first Monetary Policy Committee meeting where it is expected that the apex bank may raise the benchmark interest rate by as much as five per cent. This also comes as the CBN Governor, Dr Olayemi Cardoso, says the naira is undervalued in the foreign currency markets, according to Bloomberg.

Other performing stocks on NGX are Coronation Insurance (10%), Japaul Gold & Ventures (9.98%), UPL, (9.82%) and Tripple Gee (9.69%). The equity market performance also coincides with the change in management at the Nigerian Exchange Group, with the appointment of Temi Popoola as Group Managing Director/Chief Executive Officer, and Jude Chiemeka as Acting CEO of NGX, its operating ex- change subsidiary.

Continued buy interests in industrial heavyweights namely, DANGCEM (+6.49%), BUACEMENT (+9.98%) alongside BUAFOODS (+5.59%) kept the market in the green, outweighing selloffs in Tier-1 banks namely, UBA (-0.33%), AC- CESSCORP (-1.22%) and FBNH (-0.78%). Consequently, the year- to-date (YTD) return rose to 35.84 per cent, while market capitalisation gained N1.62 trillion to close at N55.58 trillion.

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