Investors gain N1.8tn as YTD returns hit double digits

The year-to-date gains of the Nigerian Exchange Limited have hit double digits less than a month into the New Year, signaling a sustained bullish trend.

At the close of trading on Friday, the YTD returns of the benchmark index of the exchange stood at 11.06 per cent as the All-Share Index was 83,042.96 basis points with the market capitalisation of listed equities climbing by 4.24 per cent week-on-week to N45.442tn.

Market activity since the beginning of the year reflected a positive level of participation. In the past week, a total of 5.719 billion units of shares worth N88.828bn were traded in 80,064 deals. This is an increase over the previous week’s record when investors on the floor of the exchange traded a total of 3.320 billion shares valued at N41.755 bn which were exchanged in 46,994 deals.

This revealed that investor sentiment was past above-average traded volume, reflecting a positive market breadth and a surge in buying sentiment, which indicates players assuming strategic positions for both dividend income and capital gains.

On the strength of the positive momentum in the market, investors earned a substantial N1.85tn throughout four out of five trading sessions. The market recorded the first dip in market cap in the New Year on Thursday.

Across the sectors, an overall bullish trend prevailed led by the financial services sector. Consumer goods, insurance, and banking stocks emerged as the frontrunners, recording appreciations of 9.60 per cent, 7.63 per cent, and 5.10 per cent, respectively.

The gains were on the back of increased value in the prices of key equities such as Cadbury Nigeria Plc, Veritaskap, Linkage Assurance Plc and Mcnichols Plc.

Similarly, the industrial goods sector recorded a 4.80 per cent increase, propelled by heightened buying interest in Julius Berger, RT Briscoe and Lafarge Africa.

However, the oil & gas index recorded a decline due to sell pressure in TotalEnergies Marketing.

Trading in the top three equities namely: Transnational Corporation Plc, FCMB Group Plc and Fidelity Bank Plc, when measured by volume accounted for 1.380 billion shares worth N17.741bn in 12,442 deals, contributing 24.12 per cent and 19.97 per cent to the total equity turnover volume and value, respectively.