Following renewed bargain-hunting in some banking stocks, the Nigerian Stock Exchange (NSE) defied the current recession to close upbeat yesterday, causing the All Share Index (ASI) to appreciate by 0.64%.
At the close of Tuesday, the ASI rose by 218.78 points or 0.64 per cent to 34,340.56 points. Also, investors gained N113 billion in value as market capitalisation rose to N17.943 trillion.
The upturn was impacted by gains recorded in medium and large value stocks, including IBTC Holdings, United Bank for Africa (UBA), Access Bank, FBN Holdings, and UPDC Real Estate Investment Trust.
Analysts at Vetiva Capital said: “With the consistent declines recorded in the last few sessions, a number of savvy investors took advantage of the current price levels and improved dividend yields, thereby taking position in fundamentally sound stocks across sectors.
“With all sectors closing in the green, coupled with the positive market breadth (1.63x), we expect today’s bullish performance to filter into tomorrow’s session, barring significant adverse events capable of dampening investors’ confidence.”
Market sentiment, as measured by market breadth, was positive with 26 stocks recorded gains relative to 16 losers. UPDC Real Estate Investment Trust recorded the highest price gain of 9.64 per cent to close at N4.55 per share.
United Capital followed with 9.52 per cent to close at N4.60, while Fidelity Bank rose by 9.47 per cent to close at N2.66, per share.
Mutual Benefits Assurance rose 9.8.70 per cent to close at 25 kobo, and Cornerstone Insurance advanced 8.62 per cent to close at 63 kobo, per share.
On the other hand, Eterna led the losers’ chart by 9.98 per cent to close at N4.15 per share. Fidson Healthcare followed with a 9.81 per cent fall to close at N4.87 per share.
Champion Breweries fell 9.43 per cent to close at 96 kobo, per share.
Julius Berger slipped 8.95 per cent to close at N17.30, and Chams shed 8.33 per cent to close at 22 kobo, per share.
However, the total volume of trades decreased by 35.67 per cent to 365.414 million units valued at N4.692 billion, exchanged in 6,325 deals.
Transactions in the shares of Zenith Bank topped the activity chart with 71.934 million shares valued at N1.730 billion.
Transnational Corporation of Nigeria (Transcorp) followed with 37.173 million shares worth N32.853 million, while Guaranty Trust Bank traded 30.003 million shares at N1.022 billion.
Access Bank traded 29.549 million shares valued at N243.312 million, while UBA transacted 29.332 million shares worth N236.303 million.