The bullish trend in the equity market has resumed, with the Nigerian Exchange Limited experiencing positive trading on Monday. This comes after the market had dipped into the red zone on Friday, despite a rise in inflation to 28.20% in November.
The All Share Index closed higher at 72,404.91 points, a marginal increase from the previous 72,389.23 points on Friday. Market capitalisation also saw a 0.02% rise, closing at 39,621, resulting in a N9 billion gain for investors. The positive performance was attributed to stocks of United Bank for Africa, AccessCorp, Zenith Bank Plc, GTCO, and MTN Nigeria.
Market Breadth, which measures investors’ sentiment, was negative, with 18 gainers and 33 losers. Infinity Trust Mortgage Bank maintained its position on the gainers’ chart for the second week, leading with a 9.93% gain to close at N3.10. This was followed by John Holt, Transcorp Hotel, SCOA, and FTN Cocoa on the gainers’ chart.
On the other hand, the losers’ chart was topped by ABC Transport, ETranzact, RT Briscoe, Sovereign Insurance Plc, and The Initiates Plc, with losses ranging from 6.84% to 9.89%.
Volume and Value drivers of the market trend were led by stocks of Mutual Benefits Assurance Plc, UBA, Zenith Bank, Transcorp, MTN Nigeria, and Sterling Financial Holdings Company Plc. The day’s transaction volume increased to 324.25 million trades valued at N4.39 billion from 6,745 deals executed, involving 121 stocks.
Analysts at Cowry Asset Management Limited anticipate a continuation of positive sentiment and profit-taking, driven by bargain-hunting for dividend-paying stocks. They expect market players to consider the recently published Consumer Price Inflation report and its potential impact on the financial market, amidst sector rotation and portfolio rebalancing spurred by high expectations for full-year corporate numbers and high yields.
