Nigerian stocks climb for third straight session on investors’ stronger risk appetite

Nigerian stocks appreciated for the third trading session in a row on Tuesday, adding N145.1 billion as the main equity index expanded by 0.6 per cent, aided by improving investors’ optimism particularly in big-cap stocks.

Demand pressure on the shares of MTN Nigeria, Zenith Bank, GTCO and WAPCO helped sustain the bull run.

The central bank raised the benchmark interest rate for the fourth consecutive time on Wednesday to 16.5 per cent by a hundred basis points, a hawkish stance aiming to bring Nigeria’s galloping inflation to heel.

That could hurt the fragile and new-found recovery of Nigeria’s stocks which touched a ten-month low this month, considering that recent rate hikes triggered an outflow of smart money from stocks into fixed income securities thought by investors to be safer.

“We maintain our pessimistic outlook for the equities market as the market remains unattractive to investors amid the prevailing rising yield environment,” said analysts at brokerage firm and investment bank United Capital in an outlook note seen by PREMIUM TIMES.

“We posit that the MPC’s decision in its Nov-22 meeting is a crucial factor that will determine the direction and tone of the local bourse going forward.”

Market breadth, which measures the depth of investors’ sentiment towards trade, was positive as 27 gainers emerged relative to 7 losers. The all-share index fell 266.4 points to 44,929.3, while market capitalisation declined to N24.5 trillion.

The index is up 5.2 per cent so far this year.

TOP FIVE GAINERS

UPDC REIT led gainers, appreciating by 10 per cent to close at N2.75. International Breweries went up 9.41 per cent to N4.65. Sovereign Trust rose to N0.26, notching up 8.3 per cent. Fidson added 7 per cent to end trade at N8.72. UACN completed the top 5, climbing by 6.7 per cent to N9.50.

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TOP FIVE LOSERS

RT Briscoe was the worst performing stock, declining by 10 per cent to close at N0.27. Presco shed 8.7 per cent to close at N110. Chams fell to N0.23, losing 4.2 per cent. Sunu Assurance slid to N0.28, recording 3.5 per cent depreciation. Consolidated closed at N0.59, going down by 3.3 per cent.

TOP FIVE TRADES

Altogether, 126.6 million shares estimated at N3.9 billion were traded in 3,383 deals.

Zenith Bank was the most active stock with 13.6 million units of its shares worth N298.6 Million traded in 304 deals. Fidelity Bank shares of 12.2 million units, priced at N49.5 million, exchanged hands in 117 transactions.

MTN had 12 million shares valued at N2.4 billion traded in 219 deals. AIICO traded 11 million shares estimated at N5.8 million in 58 transactions. Transcorp traded 10.2 million shares valued at N11.5 million in 52 deals.