- Nigerian stock market continues on the bullish run since the beginning of the new year sustaining growth above 4%.
- On Wednesday, investors gained $1.3 billion in a single day trading.
- Analysts attribute the bullish run on higher crude oil prices and crash in Treasury bill rates.
Nigerian equities market rally on the bullish run since the beginning of the new year sustaining growth above 4% due to higher oil prices and the drop in Treasury bill rates.
At the end of trading on Wednesday, January 8th, 2020, investors smiled to the bank with N470.9 billion ($1.3 billion) gains as All Shares Index appreciated by 3.54% to close at 28,562.48 points.
All sectors recorded gains as most of the market indices closed bullish. The Industrial Goods index led gainers with a 6.2% gain, following substantial buy interest in Dangote Cement (+9.3%) and WAPCO (+5.7%).
The Banking(+3.7%), Insurance (+2.7%) indices trailed due to gains in STANBIC (+6.3%), FBNH (+10.0%) and ZENITH (+3.8%) as well as MANSARD (+2.5%) and CHIPLC (+8.3%). Similarly, price appreciation in MTNN (+1.8%), FLOUR MILLS (+8.8%), and NASCON (+3.8%) pushed the AFR-ICT and Consumer Goods indices 1.0% and 0.3% higher respectively.
Lastly, the Oil & Gas index edged 0.2% higher due to gains in CONOIL (+9.7%) and OANDO (+1.3%), according to Afrinvest data.
On Year-to-Date (YTD), market returns increased by 6.41% while market capitalisation stands at N13.8 trillion.
The activity level improved as volume and value traded rose by 66.2% and 58.4% to 741.8 million units and N9.2 billion respectively. The top traded stocks by volume were UBA, ZENITH Bank , and ACCESS Bank, while ZENITH, UBAand MTNN (N1.3bn) were the top traded stocks by value.
Since the beginning of 2020, investors on the Nigerian stock exchange, have gained N720 billion ($1.98 billion), making it one of the world's best-performing stocks.
Analysts at Afrinvest believe the trend will continue throughout the week.