Positive ending close for the stock market as interest in banking stocks increases

As a result of growing interest in banking stocks, the equities market began the new week on a positive note.

Due to a retracement in the prices of important stocks like Ecobank Transnational Incorporated, NEM Insurance, United Bank for Africa, FCMB Group, and AIICO, as well as investor appetite for stocks listed on the industrial goods index, the financial services sector saw a downturn on the Nigerian Exchange Limited during the past week.

Sub-sector indices, however, showed positive results at the close of trade on Monday. The banking index led gainers with a 2% increase, propelled by buy pressure in Wema Bank, Zenith Bank, UBA, Access Holdings, and Fidelity Bank Plc.

Positive feelings were also evident in the market, with 34 stocks reporting gains against 16 losses.

The Consumer and Industrial Goods indices showed modest advances of 1.09 percent and 0.11 percent, respectively, while the Insurance sector witnessed a gain of 1.48 percent. The only industry to lose was the Oil and Gas sector, which fell by 0.23 percent. This was mostly because investors were selling Eterna Plc.

The benchmark index of the NGX increased by 0.70 percent to 102,044.84 points at the close of trading, representing a 36.47 percent return so far this year.

Investors gained almost N404 billion as a result of the good trade that drove the market capitalization to N57.6 trillion.

Honeywell Flourmill and NEM Insurance are among the gainers; they both saw a 10% gain to close at N3.74 and N6.05. The stocks of Dangote Sugar increased as well. It increased by 9.97% to to end at N61.20.

In contrast, to close at N0.54, N2.11, and N12.60 per unit, respectively, Prestige Assurance, LASACO, and UAC Nigeria lost 10%, 9.83%, and 9.58% of their respective shares.

All things considered, the stock market’s trading activity was upbeat.

With 11,344 trades and 436.90 million units, respectively, a 22% and 5.17% increase in total deals and volume. To N17.10 billion, the total value decreased by 13.98 percent.

With 96.63 million shares moved in 493 trades, Guaranty Trust Holding Company’s shares were the most traded security by volume. Transcorp Power, which went public last Monday, was the most traded security in terms of value, totaling N5.93 billion.