The stock market experienced a significant upturn, with an increase of N97 billion, largely attributed to the renewed interest of investors in Oando and 26 other companies.


The stock market segment of the Nigerian Exchange Limited (NGX) experienced a recovery yesterday, recording a gain of N97 billion, primarily attributed to price increases in Oando Plc and 26 other companies.

As a result, the benchmark All Share Index (NGX-ASI) rose by 170.46 basis points, equivalent to 0.18 percent, concluding at 97,098.98 basis points. Additionally, the market capitalization increased by N97 billion, reaching a total of N55.130 trillion.

The performance of the stock market for the Month-to-Date and Year-to-Date was reported at -0.7 percent and +29.9 percent, respectively.

Sector analysis revealed that the NGX Banking Index increased by 1 percent, the NGX Insurance Index by 0.8 percent, and the NGX Oil & Gas Index by 0.1 percent, while the NGX Consumer Goods Index decreased by 0.3 percent.

The NGX Industrial Goods Index remained unchanged. Market breadth indicated a positive sentiment, with 27 stocks advancing compared to 22 that declined.

Red Star Express was the top gainer, rising by 10 percent to close at N4.18, followed closely by Oando, which increased by 9.98 percent to close at N33.60 per share.

R.T. Briscoe Nigeria and United Capital both saw gains of 9.90 percent, closing at N1.11 and N16.10, respectively, while Industrial and Medical Gas Nigeria (IMG) rose by 9.87 percent to close at N17.25 per share.

Conversely, NEIMETH International Pharmaceuticals led the decline with a drop of 7.69 percent, closing at N1.80 per share. Honeywell Flour Mills followed with a decrease of 6.10 percent, closing at N3.85, while Sovereign Trust Insurance fell by 5.56 percent to close at 51 kobo per share.

DEAP Capital Management and Trust experienced a loss of 4.00 percent, closing at 48 kobo, and Ecobank Transnational Incorporated declined by 3.72 percent, closing at N20.70 per share.

 

The overall trading volume experienced a significant increase of 41.69 percent, resulting in 636.501 million units traded. These units were valued at N12.770 billion and exchanged through 7,990 transactions.

Access Holdings emerged as the most actively traded stock, accounting for 112.620 million shares worth N2.110 billion. United Capital followed closely with 74.421 million shares valued at N1.196 billion, while Guaranty Trust Holding Company (GTCO) traded 74.340 million shares worth N3.337 billion.

Veritas Kapital Assurance contributed 55.404 million shares valued at N55.085 million to the market activity, and United Bank for Africa (UBA) traded 40.565 million shares worth N851.718 million.

In terms of market outlook for August, CardinalStone Partners anticipates that the market trend will be influenced by several factors.

One key factor is the ongoing rotation into attractive fixed-income securities, driven by elevated yields after the Central Bank of Nigeria (CBN) announced a further 50 basis point increase in the MPR to 26.75 percent. Additionally, the upcoming earnings results of various companies are expected to impact market dynamics.

Furthermore, the ongoing recapitalization efforts by banks are likely to influence market dynamics as these institutions accelerate their capital raise programs.