Stock Market Edges Up 0.02% on Surge in Buying Interest: Transcorp Hotels and Others Lead the Charge
The Nigerian Exchange Limited (NGX) witnessed a modest positive start to the week, with the stock market gaining 0.02% fueled by increased investor interest in key players such as Transcorp Hotels Plc and 17 other companies. This surge in buying activity contributed to the All-Share Index (ASI) rising by 15.68 basis points, closing at 72,404.91 points, while market capitalization expanded by N8 billion, reaching N39.621 trillion.
Key Points:
- Performance Highlights:
- Transcorp Hotels marked a notable gain of 9.38%, propelling the positive momentum.
- Fidelity Bank and United Bank for Africa (UBA) also contributed, rising by 2.65% and 0.41%, respectively.
- Market Breadth and Sentiment:
- Market breadth closed negative with 18 advancing stocks and 33 declining.
- Infinity Trust Mortgage Bank led the gainers with a 9.93% increase, followed by John Holt and Transcorp Hotels.
- Associated Bus Company experienced the highest decline with 9.89%, followed by eTranzact International and R.T. Briscoe Nigeria.
- Trading Activity:
- The total volume traded increased by 5.6% to 324.25 million units, valued at N4.40 billion.
- Mutual Benefits Assurance dominated trading activity with 42.082 million shares worth N20.362 billion.
- Outlook for the Week:
- United Capital anticipates continued strong investor sentiments, particularly in the Banking sector.
- The expectation is driven by the impressive performance across all banks and anticipation of the full-year 2023 earnings season.
- However, there is a downside risk with the possibility of profit-taking activities following the market’s recent highs.
Conclusion: As the Nigerian stock market initiates the week with a slight positive tilt, the increased buying interest in prominent stocks reflects optimism among investors. Notable gains in key players, particularly in the banking sector, contribute to an overall positive sentiment. While the outlook remains robust, market participants should remain vigilant to potential profit-taking activities amid the recent market highs.