The Nigerian stock market hit the highest level on record yesterday as heavy transactions in the shares of Airtel Africa and 36 stocks lifted the Nigerian Exchange Limited (NGX) All-Share Index (ASI) to 70,581.76 points
Specifically, at the reopening of than transactions in November, the ASI rose by 1,345.57 points, representing a gain of 1.94 per cent to close at 70,581.76 points.
Also, market capitalisation appreciated by N739 billion to close at N38.778 trillion.
The development caused the Year To Date (YTD) return to increase by +37.7 percent.
Yesterday’s uptrend was impacted by gains recorded in medium and large capitalised stocks: Airtel Africa, Presco, FBN Holdings (FBNH), Zenith Bank, and Cadbury Nigeria.
Please remember that the market has been on an upward trajectory since the new administration led by President Bola Tinubu, due to its bold reforms, especially the removal of fuel subsidies and the liberalisation of the foreign exchange market.
Also, investors have continued to reposition and increase their portfolio in anticipation of improved earnings and interim dividends by listed firms in the third quarter result.
Market breadth closed positive as 37 stocks gained relative to 16 decliners. On the sectoral performance, the Insurance (+3.7 per cent) and Banking (+2.2 per cent) indices recorded gains, while the Industrial Goods and Oil & Gas indices closed flat. The Consumer Goods (-0.1 per cent) index emerged as the only loser yesterday.
Airtel Africa recorded the highest price gain of 10 per cent to close at N1,694.10, while University Press and Chams Holding Company followed with a gain of 9.91 per cent each to close at N2.33 and N2.44 per cent respectively.
NEM Insurance rose by 9.90 per cent to close at N5.55, while FBNH appreciated by 9.78 per cent to close at N19.65.
On the other hand, Caverton Offshore Support Group led the losers’ chart by 7.74 per cent to close at N1.43 per cent. Champion Breweries followed with a decline of 6.85 per cent to close at N3.40, while C & I Leasing lost 6.41 per cent to close at N3.36 kobo.
UPDC Real Estate Investment Trust depreciated by 2.70 per cent to close at N3.60, while Unilever Nigeria declined by 2.44 per cent to close at N14.
The total volume traded increased by 24.51 percent to 601.733 million units, valued at N11.016 billion, and exchanged in 7, 444 deals.
Transactions in United Bank for Africa (UBA) shares topped the activity chart with 163.562 million shares valued at N3.473 billion.
FBNH followed with 94.655 million shares worth N1.841 billion, while Guaranty Trust Holding Company (GTCO) traded 45.752 million shares valued at N1.601 billion.
Access Holdings Consolidated traded 36.694 million shares valued at N641.992 million, while Universal Insurance sold 34.716 million shares worth N8.938 million.
Reacting to market performance, the Head of Equity, Planet Capital, Dr. Paul Uzum, said: “Airtel Africa gained 10 per cent to lift the market today (yesterday), it’s weight in the market index is roughly 15 per cent. The movement will not be sustained,” he said.
Analysts at Afrinvest said: “Tomorrow, we anticipate a mildly negative performance on the local bourse as investors take profit from the recent gains.
