The Nigerian equities market sustained its bullish momentum on Thursday, buoyed by strong bargain-hunting in blue-chip stocks, particularly in the banking and insurance sectors.

The NGX All-Share Index climbed 1.08 percent to close at 146,981.17 basis points, while market capitalization surged by N1 trillion to N93.48 trillion, reflecting renewed investor confidence and strategic accumulation at attractive valuations.

Market sentiment was decisively positive, with 55 gainers overpowering 9 decliners, translating to a robust 6.1 times market breadth.

The rally was primarily fueled by notable advances in tier-one banking stocks such as Zenith Bank Plc which gained 8.4 percent, United Bank for Africa Plc which rose 6.9 percent, Guaranty Trust Holding Company Plc which appreciated by 3.2 percent, and Stanbic IBTC Holdings Plc which advanced by 4.8 percent.

Other top-performing stocks included Custodian Investment Plc and Linkage Assurance Plc, both appreciating by 10 percent, alongside Oando Plc, Legend International Limited, and Nigerian Aviation Handling Company Plc (NAHCO). Conversely, Austin Laz & Company Plc, Union Dicon Salt Plc, Sterling Financial Holdings Company Plc, Nigerian Exchange Group Plc, and Guinness Nigeria Plc witnessed price declines.

Across sectors, performance was largely positive. The Insurance index led with a 4.6 percent gain, followed by Banking at 3.8 percent appreciation, Consumer Goods, 1.7 percent; and Oil & Gas, 0.7 percent. However, the Industrial Goods and Commodities indices closed marginally lower by 0.1 percent and 0.03 percent, respectively, indicating selective profit-taking in heavyweight counters.

Despite the upbeat mood, trading activity moderated, suggesting a tilt towards tactical positioning rather than aggressive accumulation. Total trading volume dropped 25.6 percent to 599.71 million units, while transaction value fell 56.45 percent to N22.7 billion, exchanged across 23,675 deals. Wema Bank Plc emerged as the most traded stock by volume with 98.43 million shares, while Zenith Bank Plc led in value with trades worth N2.63 billion.

With the latest uptick, the Month-to-Date and Year-to-Date returns now stand at -5.7 percent and +41.3 percent, respectively, underscoring the market’s resilience amid recent volatility.

Analysts believed the rally signals sustained investor confidence in the banking and insurance sectors, as market participants continue to take advantage of attractive valuations in anticipation of stronger year-end results.

Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (Syndigate.info).