Nigerian stocks extended their winning streak for the 10th consecutive day on Wednesday, as investors piled more funds into shares and buying pressure pushed the main stock index past the 100,000 basis point mark to its highest level ever. history.
The stock index hit a new high of 101,571.1 points, after adding 3 percent according to Nigerian Exchange data, less than a week after the country’s stock market overtook Argentina’s to become the best performance in the world. This puts the overall performance of the Nigerian stock market over the last 52 weeks at 93.1 percent.
Stocks are off to a flying start this year in Africa’s largest economy, as the central bank prepares to join the Nigerian government’s push to reach a $1 trillion economy by 2030, having lately announced last year that lenders will be forced to increase their capital. levels to support the plan.
The move is generating a lot of interest in banking stocks, with the NGX banking index being a major driver of the strong performance of the Nigerian stock market in recent weeks.
Negative real returns on fixed income securities as a result of high inflation are also forcing investors to recoup their investment in such assets and channel it into stocks.
“In January 2024, we expect the bulls to prevail as bargain hunting remains the order of the day,” United Capital analysts said in this week’s investor outlook note.
“Given the global events in the main central banks of the advanced economies, the high inflation expectations and the better prospects for economic growth, we expect the local stock market to register a positive performance this new week.”
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The index has returned 31.9 percent since the beginning of the year.
TOP FIVE WINNERS
Wapic Insurance appreciated 10 per cent to close at N0.88. BUA Cement rose 9.98 percent to end trading at N179.65. Japaul rose to N2.55, recording an increase of 9.98 per cent in the process. University Press Limited rose 9.82 per cent to N3.69. Tripple Gee rounded out the top 5, rising 9.69 per cent to N2.83.
TOP FIVE LOSERS
NEM led the losers, falling 7.2 per cent to close at N10. Cadbury lost 9.96 per cent to end trading at N23.50. Initiates fell to N2.27, losing 9.92 per cent. May & Baker fell to N6.65, recording a depreciation of 9.89 percent. McNichols closed at N1.46, down 9.88 per cent.
THE FIVE MAIN OPERATIONS
In total, 488.5 million shares estimated at N8 billion were traded in 12,080 transactions.
Transcorp was the most active stock with 95.1 million of its shares worth N1.6 billion traded in 1,207 transactions. Universal Insurance shares of 45.6 million units, valued at N18.6 million, changed hands in 168 transactions. Unity Bank had 27.3 million shares valued at N74.1 million traded in 223 transactions. Jaiz Bank traded 27 million shares estimated at N76.9 million in 432 transactions. Japaul Gold traded 25.3 million shares valued at N64.3 million in 239 transactions.