Olayemi Esan (with Market Forces Africa Report)
The Nigerian Stock Exchange (NSE) triggers circuit breaker for the first time since 2016 as equities investors gain ₦1.1 trillion.
Following the collapse in stop rates to below 0.5% for all maturities at the primary market auction, domestic equities has been enjoying patronage of investors, says Cowry Assets Management.
Hence, the NSE All Share Index gained 6.23%, triggering a 30-minute trading halt of all stocks as ASI rose beyond the set threshold of 5%.
Similarly, the Exchange printed 62 gainers as against 7 losers even as the year to date gain of the NSE ASI rose to 31.66%.
The benchmark index advanced 6.23% to close at 35,342.46 points on the back of gains in DANGCEM (+8.1%), BUACEMENT (+10.0%) and AIRTELAF (+10.0%).
The rally lifted NSE market capitalisation to ₦18.5 trillion while year to date return improved to 31.7%.
Activity level surged as volume and value traded increased by 39.0% and 92.0% to 1.2bn units and ₦17.4bn in that order.
The most traded stocks by volume were ZENITH (161.4m units), FBNH (121.5m units) and ACCESS (100.8m units).
Meanwhile ZENITH (₦4.5bn), MTNN (₦2.7bn) and GUARANTY (₦1.8bn) led by value.
Afrinvest said in a comment that all the 6 sectors that the firm tracks maintained the positive run.
The Industrial Goods and Banking indices advanced the most, up 8.7% and 7.9% respectively following price appreciation in DANGCEM (+8.1%), BUACEMENT (+10.0%), and ZENITH (+10.0%).
Similarly, the Consumer Goods and AFR-ICT indices closed 5.8% and 5.0% higher respectively on account of buying interest in NIGERIAN BREWERIES (+9.7%), NESTLE (+3.6%) and AIRTELAF (+10.0%).
The Insurance and Oil & Gas indices strengthened 4.8% and 2.0% respectively, driven by buying interest in MANSARD (+9.6%), OANDO (+9.8%) and ARDOVA (+9.7%).
Investor sentiment as measured by market breadth rose to 9.3x from the 7.3x recorded previously as 65 tickers gained against 7 losers.
AIRTELAF (+10.0%), BUACEMENT (+10.0%) and CADBURY (+10.0%) led the top gainers while ETERNA (-9.9%), MAYBAKER (-9.7%) and MORISON (-9.3%) led the decliners.
“Given the sustained positive run, we expect the market to close the week on a bullish note”, Afrinvest said.