THE Nigerian stock market halts days of loss-making streaks on Tuesday as buying interest improves. Sell pressure has been burning value over the past few days, resulting effects of yield repricing in the fixed income segment.
Market analysts told MarketForces Africa that both equities and fixed income markets have always competed for investors’ wallets, thus a move away from one affects the performance of the other.
Money, however, goes to where it is treated well and the risk-return profile of institutional investors has pushed more funds towards the fixed income market while selloffs persist in the equities market.
With the improved market sentiment, trading data shows that the local bourse notched a basis point to close at 49,445.31 points, driven by strong demand for FBN Holdings shares in the local bourse.
Then, the bank’s share price appreciated by 5%. The solid demand pattern helped market return which inched upward to 15.8% as the Nigerian Exchange All-Share Index increased marginally by 0.01%.
Data from the Nigerian Exchange (NGX) shows that the equities market capitalisation expanded by ₦3.22 billion to close at ₦26.670 trillion from ₦26.667 trillion the previous day.
Also, market activities were up as the total volume and total value traded for the day grew by 119.07% and 61.72% respectively, according to stockbrokers at Atlass Portfolios Limited. Approximately 147.59 million units valued at ₦2.39 billion were transacted in 3,323 deals, trading data from the local bourse shows.
GTCO was the most traded stock in terms of volume, accounting for 24.27% of the total volume of trades, followed by CAPHOTEL (14.61%), FBNH (14.17%), ZENITH BANK (7.52%), and CHAMS (5.33%) to complete the top 5 on the volume chart.
MTNN emerged as the most traded stock in value terms, with 35.94% of the total value of trades on the exchange. RTBRISCOE topped the advancers’ chart with a price appreciation of 10.00 per cent.
It was trailed by FBNH with a 5 per cent gain, and the LINKASSURE share price appreciated by 4.3 per cent. REGALINS share price pops 4.00%, MBENEFIT inched upward by 3.70%, and six (6) other companies helped drive momentum in the local bourse.
Fourteen (14) stocks depreciated, topped by TOTAL with a price depreciation of 9.98% to close at ₦211.1, as HONYFLOUR (-8.13%), CUTIX (-6.98%), ARDOVA (-4.48%), UCAP (-3.36%), CHAMS (-3.33%) and LIVESTOCK (-0.87%) also dipped in price.
Today, market breadth closed negative, recording 11 gainers and 14 losers while the sector performance ended on a negative note – for a market in a recovery mode. READ: Year to date return turns red as stock market extends losing streak
Three out of the five major market sectors closed bearish, led by the Oil & Gas sector which dropped by 2.30%, trailed by the Consumer goods sector which sloped down by 0.05% while the Industrial sector lost 0.01%.
Meanwhile, two sectors were positive, led by the Banking sector which gained 0.22%, followed by the Insurance sector with a 0.15% gain.
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