• Thursday, December 07, 2023
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Market gains N112bn as investors raise bet on penny stocks

Equities market opens week on negative note

Nigeria’s stock market on Wednesday furthered its journey into the green zone by 0.36percent, its third consecutive gain this week, as investors continued to buy low-priced counters on the nation’s Bourse. The stock market’s record positive return year-to-date (YtD) increased further to +15.75percent.

The performance indicators of Nigerian Exchange Limited (NGX) – the All-Share Index (ASI) and Market Capitalisation – increased from preceding trading day’s 59,110.02 points and N32.190 trillion respectively to 59,323.95 points and N32.302trillion. The value of listed equities increased by N112billion. This week, the market has risen by 0.55percent.

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The record gain was majorly driven by investors who bought penny stock like Afromedia which increased from 20kobo to 22kobo, after adding 2kobo or 10percent. Also, E-Tranzact International rose from N5.35 to N5.88, up by 53kobo or 9.91percent. Neimeth also advanced from N1.62 to N1.78, up by 16kobo or 9.88percent.

FTN Cocoa also moved up from N1.62 to N1.78, up 16kobo or 9.88percent, while Unity Bank rallied from N1.23 to N1.35, up by 12kobo or 9.76percent.

Shares of Universal Insurance, GTCO, Japaul Gold, UBA, and Access Corporation were actively traded as investors in 7,806 deals exchanged 643,031,260 shares valued at N6.107billion.

“The bourse is yet to return to the level of market activity we saw earlier in the month, as investors wait on the sidelines for more clarity on the various macro-economic reforms on each sector. We do not expect to see much deviation from the current trading pattern,” according to analysts at Lagos-based Vetiva Research in their February 20 note.