Boost for Stock Market as Okomu and 49 Others Drive N488bn Surge
The Nigerian Exchange Limited (NGX) stock market segment experienced a significant boost in the recent trading session, thanks to the positive performance of Okomu Oil Plc and 49 other companies. This surge led to the benchmark All Share Index (NGX-ASI) gaining 891.31 basis points, representing a 1.21 per cent increase, and closing at 74,289.02 basis points. Additionally, the market capitalisation saw a substantial rise of N488 billion, closing at N40.652 trillion.
The impressive upturn in the market was largely attributed to the price appreciation observed in several large and medium capitalised stocks. Notable companies that contributed to this positive trend include Okomu Oil, MTN Nigeria Communications (MTNN), Transcorp Hotel, Multiverse Mining and Exploration, and FBN Holdings (FBNH).
Market breadth also displayed a positive sentiment, with 50 stocks recording gains in contrast to 19 losers. Industrial and Medical Gas Nigeria and Transnational Corporation (Transcorp) emerged as the highest price gainers, both experiencing a 10 per cent increase to close at N9.35 and N8.47 per share, respectively. Following closely were Multiverse Mining & Exploration and OKOMU Oil, both recording a 9.96 per cent gain to close at N12.70 and N263.90, while Infinity Trust Mortgage Bank advanced by 9.87 per cent to close at N4.12 per share.
Conversely, John Holt led the pack of losers with a 10 per cent decline to close at N2.34 per share. Ellah Lakes followed suit with a 9.94 per cent decrease, closing at N2.90, while Tripple Gee & Company shed 9.66 per cent to close at N2.15 per share. Regency Alliance Insurance and UAC of Nigeria (UACN) also experienced declines of 8.11 per cent and 5.96 per cent, respectively.
The total volume of shares traded saw a notable 37.19 per cent increase, amounting to 760.930 million units valued at N 13.026 billion, exchanged in 7,990 deals. Abbey Morgage Bank led the activity with 224.085 million shares worth N365.279 million, followed by Access Holdings with 65.795 million shares valued at N1.523 billion, and Transcorp with 65.305 million shares valued at N552.557 million. Other active traders included United Bank for Africa (UBA), trading 45.979 million shares worth N1.198 billion, and Guaranty Trust Holding Company (GTCO), trading 43.593 million shares worth N1.744 billion.
Analysts at Afrinvest Limited attributed the bullish rally to the “Santa Claus rally” phenomenon. This surge is fuelled by robust buying activity in major banking sector stocks as fund managers engage in window dressing and investors gravitate towards fundamentally strong stocks nearing the end of the trading year.
This uptick in the stock market is an encouraging development for investors and market participants, underscoring the potential for sustained growth and positive investment outcomes. As the market continues to evolve, it is crucial for investors to stay informed and make well-informed decisions to navigate the dynamic landscape of stock trading.
