By Our Correspondent
Investors in the Nigerian equities market recorded a gain of N313 billion on Wednesday as renewed buying interest in banking stocks pushed the market higher, raising the year-to-date (YTD) return to 63.72 per cent.
The market capitalisation of listed equities increased by 0.19 per cent to close at N165.41 trillion, while the Nigerian Exchange Limited (NGX) All-Share Index (ASI) advanced by the same margin to 254,762.81 points.
The positive performance was largely driven by strong gains in Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA) and Zenith Bank, which appreciated by 5.13 per cent, 2.68 per cent and 2.65 per cent, respectively.
The gains in the banking stocks offset losses recorded by First HoldCo, Dangote Sugar Refinery and Oando, which declined by 4.65 per cent, 2.11 per cent and 0.47 per cent, respectively.
Trading activities strengthened during the session, with total volume of shares traded rising by 14.01 per cent to 522.31 million units. Transaction value also surged by 80.14 per cent to N37.46 billion.
However, the number of deals fell by 25.69 per cent to 38,074 transactions.
First HoldCo emerged as the most actively traded stock, accounting for 125.21 million shares valued at N12.67 billion, thereby leading the market in both volume and transaction value.
Market breadth closed positively at 1.12 times, as 28 stocks recorded gains against 25 decliners.
Transpower topped the gainers’ chart with an appreciation of 9.97 per cent, while Eterna led the losers, shedding 9.94 per cent.
Meanwhile, the NASD Over-the-Counter (OTC) Securities Exchange recorded a decline, with its Securities Index dropping by 0.88 per cent to close at 4,191.14 points.
Similarly, the market capitalisation of the NASD OTC Exchange fell by 0.87 per cent to N2.52 trillion, reducing its year-to-date return to 18.27 per cent.
Despite the market downturn, trading activity improved significantly, as total volume traded increased by 97.68 per cent to 517,920 units, while transaction value rose by 122.93 per cent to N52.85 million.
The number of transactions also increased by 34.78 per cent to 31 deals.
SDINGINPLC emerged as the top gainer, appreciating by 10 per cent, while SDOKITIPUPA recorded the steepest decline, losing 10 per cent.
On the international front, economic activity across the Eurozone slowed in October, with the Composite Purchasing Managers’ Index (PMI) falling to 51.7 points from 53.1 points recorded in September.
Despite remaining above the 50-point threshold, which indicates economic expansion, the latest reading represented the weakest performance in four months.
The slowdown was attributed to weaker new orders, a marginal decline in employment and rising energy costs, signalling mounting pressure on the region’s economic recovery.
Available data suggested that the Eurozone economy expanded by approximately 0.3 per cent at the beginning of the fourth quarter. However, increasing input costs pushed price inflation to a five-month high, reinforcing expectations of further monetary tightening by the European Central Bank.
In the commodities market, crude oil prices declined as investors reassessed the possibility of an escalation in tensions between the United States and Iran following the US midterm elections.
The decline followed President Donald Trump’s indication that the United States had no immediate plans to launch an attack on Iran.
The remarks eased concerns about an imminent military confrontation and the potential disruption of global oil supplies, contributing to the downward pressure on crude oil prices.
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