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Tuesday, December 7, 2021

Improve investors sentiment may drive up Nigeria’s equity market

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~United Capital Plc 

The domestic stock market reversed its bearish run on Wednesday, after two consecutive days in the red.

The All-Share Index (ASI) climbed by 1.9 percent to close at 39,592.29 points as sentiment noticeably improved and investors took positions in attractively valued tickers.

The bourse’s market capitalization rose by N382.1 billion to hit N20.6 trillion, as the YTD loss moderated to 1.7 percent.

In terms of activity levels, the total volume traded weakened by 9.9 percent, from 526.3 million to 474.4 million, while the total value traded rose 31.6 percent from N3.0 billion to N4.0 billion.

Across sectors, the performance tilted bullish, with three of the five sectors we cover closing in the green.

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The Industrial sector led the pack as it gained 3.6 percent due to buying interest in DANGCEM (+6.5 percent).

Similarly, the Consumer goods and Banking sectors closed higher by 3.1 percent and 0.8 percent respectively, as bargain hunting in NNFM (+6.9 percent), NESTLE (+6.4 percent), FBNH (+6.6 percent) and JAIZBANK (+5.1 percent) propelled the sectors higher.

On the other hand, the Oil and Gas sector declined by 0.2 percent as profit-taking activities in OANDO (-1.0 percent) weighed on the index.

The Insurance sector was the biggest loser, shedding 2.0 percent, on account of selloffs in MANSARD (-10.0 percent) and SOVRENIN (-8.3 percent).
Investor sentiment as measured by market breadth improved to 1.6x as 23 stocks advanced, and 14 stocks declined.

Looking ahead to the last trading day of the holiday-shortened week, we expect a positive turnout due to the observed improvement in investor sentiment.

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