Trading on the Nigerian Exchange Limited was upbeat Tuesday as its benchmark All Share Index hit a 15-year high, following marginal 0.51% notch to 66,490.34 basis points, from 66,151.38bps it closed on the previous day, surpassing the highest value of 66,371.20 recorded on the Exchange on March 5, 2008.
The performance was in part, attributed to a surge in banking stocks as investors strategically positioned themselves, taking advantage of the recent record earnings posted by the banks, after Stanbic IBTC Holdings released another superlative audited half-year performance, especially the 121.46% growth in net profit from a 58.18% improvement in gross earnings. The directors recommended a N1.50 interim dividend per share, just like paid in the similar period of last year. Stanbic IBTC, therefore, becomes the first of the interim dividend paying stocks to publish its half-year score-card.
Consequently, market capitalisation increased by 0.51%, closing at N39.69tr, up from N36.21tr recorded on Monday, bringing the total gain by investments in two days to N510bn.
Among the various sectoral indices, the NGX Banking Index experienced the most significant daily gain, rising by 1.63%; followed closely by the Consumer Goods Index, with a 0.99% increase, and the NGX Industrial Index, which saw a 0.21% uptick. Conversely, the NGX Oil/Gas Index dipped by 0.09%, and the NGX Insurance Index recorded a substantial decline of 1.56%, both attributable to investors reallocating their funds.
An analysis of Tuesday’s market activities revealed a substantial increase in trade turnover compared to the previous session, with transaction values surging by an impressive 79.18%. Consequently, the total volume of stocks traded reached 436.95m units, valued at N7.02bn, across 7,933 deals. This marked a significant uptick from the 311.12m units valued at N3.92bn traded in 7,193 deals on Monday.
FBN Holdings topped the activity chart with 55.15m units valued at N911.21m. Following closely was Japaul Gold with the sale of 33.11 million units worth N29.92 million, while UBA transacted 30.17 million units valued at N41.21 million.
Market breadth closed positive, with 35 stocks appreciating in value while 32 stocks depreciated. Champion Breweries led the pack of gainers with a remarkable 10% increase in stock value. Conversely, Linkage Assurance led the group of 32 declining securities, with a 10% decrease in stock value.
Reacting to the performance of the market, market experts attributed this strong performance to a combination of factors, including investor sentiment influenced by macroeconomic developments such as the formation and swearing-in of the economic cabinet by President Bola Tinubu.
Additionally, movements in yields within the fixed income market played a role in shaping market dynamics. They emphasized the importance of strategically positioning investments in fundamentally strong stocks, given the ongoing challenges posed by the weak macroeconomic environment on corporate earnings.