The Nigerian stock market gained ground for the eighth day in a row, with the benchmark All Share Index/ market capitalization improving further by 1.40% to settle at 24,143.37 index points and N12.582 trillion respectively.
- Activity level was mixed, as the volume of shares exchanged increased by 23.60% to 426.64 million units of shares valued at N4.10 billion in 7,384 deals.
- FBNH was the most active in today’s trading, boosting market turnover by 91.92 million, while GUARANTY was the most traded stock by value at N1.04 billion, topping the value list.
- Market sentiment, as measured by market breadth, was positive with 35 gainers led by NB (+10.00%), as against 4 losers topped by CILEASING (-6.00%). Sector performance was bullish; all the indices appreciated, led by a massive +5.32% gain in the lenders Index, as Tier-one banking stocks continued to rally.
- The Insurance (+3.66%) and Consumer Goods (+1.98%) indices also registered gains, as CHI Plc, NEM, NB and GUINNESS all recorded above 8% price appreciation. Lastly, ARDOVA (+9.84%) and WAPCO (+4.71%) drove the Oil & Gas, and Industrial goods indices by 1.27% and 0.64% respectively.
NB up 10.00% to close at N33; CAP up 9.57% to close at N22.9; GUARANTY up 9.29% close at N22.95; GUINNESS up 8.29% close at N18.95; and FLOURMILL up 6.33% close at N21.
CILEASING down 6.00% to close at N4.7; UACN down 3.47% to close at N6.95; UNIONDAC down 3.13% to close at N0.31; INTBREW down 2.00% to close at N4.9; and ABCTRANS N0.35 0.00% to close flat.
Why stocks are gaining: Nairametrics understands the low yielding fixed income market is driving smart money into the stock market. Most stocks hit all-time lows in March as investors dumped stocks over concerns about the crash in oil prices and the COVID-19 pandemic.
Oil prices have rebounded this week as the world braces up for a worldwide easing of the lockdown. Global stimulus injections of capital by most developed economies have also calmed markets. Nigeria also recently received the $3.4 billion IMF loan which is believed will boost the external reserves.